Lanolin is an all-natural moisturizer derived from sheep's wool -- specifically it comes from the sebaceous gland of a sheep. Its texture is similar to petroleum jelly so it's thicker than a typical lotion -- more like an ointment or salve. This effective emollient softens and smooths dry skin while providing a layer of protection to help keep moisture in. Lanolin has been used for eczema and dermatitis since the late 19th century. It's great for chapped skin or lips, windburned cheeks and sore noses. Lanolin has long been used by breastfeeding mothers for chapped and cracked nipples. It is gentle and soothing. Also, it can be used on babies' bottoms to treat diaper rash. Because of its anti-bacterial properties, it can be applied to help heal minor cuts, burns or skin abrasions.