A composition and method of using a composition containing kunzea oil for treating dermatological conditions in humans and animals, particularly greasy heel occurring in horses, in which the kunzea oil is formulated into a composition for topical application at ambient temperatures to the skin of the animal or human to cover the area of the affected lesions. Improvement in certain dermatological conditions such as pastern dermatitis in horses was noted almost immediately with total resolution of the condition in about 7 days. The composition can be used to treat humans suffering from psoriasis and similar dermatological conditions. This invention offers persons and animals suffering from dermatological conditions a low cost effective treatment based on a natural product which shows significant improvement of the condition within days of applying an effective amount of the composition to the affected area as part of the treatment.