Lanolin is used for moisturizing and healing dry, chapped, or cracked skin on lips, heels, and nipples, as well as for treating skin irritations like eczema, diaper rash, and minor cuts or burns. It functions as an emollient, softening skin, reducing itching, and creating a protective barrier to prevent moisture loss. Lanolin also appears in various personal care products, including cosmetics, hair care, and lubricants.