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Background: Shirodhara, the continuous pouring of warm medicated oil or other liquids onto the forehead, is one of the most widely used Ayurvedic procedures for anxiety, insomnia, stress and depression. It is increasingly offered in wellness settings worldwide. Despite its popularity, its mechanisms and clinical effectiveness have received limited rigorous study. Objective: To describe the classical basis and practical protocols of Shirodhara, review proposed mechanisms, and evaluate clinical and experimental evidence in psychological disorders. Methods: Narrative review of classical Ayurvedic texts and of experimental and clinical studies identified through PubMed, Google Scholar and Ayurveda journals. Results: Classical texts describe Shiro Seka (pouring on the head) as one of four forms of Murdhni Taila (head oil therapy), used for Vata disorders of the head and mind. Controlled experiments in healthy women using a robotic oil-dripping system found that Shirodhara reduced state anxiety, induced an altered state of consciousness, reduced plasma noradrenaline and increased natural killer cell activity compared with a supine control; adding lavender oil enhanced these effects. A randomised crossover pilot study in adults with sleep problems found better sleep outcomes with sesame oil than with warm water. Many clinical studies report symptom improvement in anxiety and insomnia, but most are small and lack appropriate controls. Conclusion: Shirodhara produces measurable short-term relaxation and anxiolytic effects. Its specific clinical benefit in anxiety disorders, insomnia and depression remains to be demonstrated in adequately powered, sham-controlled trials using standard outcome measures.Keywords: Shirodhara; Murdhni Taila; Dhara; anxiety; insomnia; stress; Ayurvedic procedures; relaxation