Abstract The significance of getting sufficient sleep for maintaining good health and wellbeing is widely known. The American Psychiatric Association classifies insomnia as the most common sleep–wake disorder characterized by difficulty with sleep quality, timing, and quantity. The residual effects and the social stigma associated with the use of sedative drugs incline patients toward seeking alternative therapy. Ayurveda presents an exhaustive elucidation of the etiology, manifestations, and therapeutic modalities concerning insomnia. Among the extensively prescribed Panchakarma (the five-fold bio-purification process) interventions for insomnia management, Nasya (instillation of oils, powders, or juices through the nasal route) holds a significant position. Nasya is considered an effective way to directly deliver medicines to the brain by bypassing the blood–brain barrier through olfactory and trigeminal nerve pathways. Anandkand, an important book on Indian alchemy, mentions various formulations of hemp, including the use of hemp seed oil (Vijaya Beej Tail) for Nasya. A narrative analysis of hemp seed oil Nasya for insomnia was conducted using Ayurvedic texts and electronic databases. Although valued for its nutraceutical properties, there is limited clinical data on its effectiveness in treating insomnia. No relevant clinical studies were found for its use in treatment of insomnia, but some preclinical and clinical studies exist for other conditions. The presence of a perfect proportion of omega-3 to omega-6 fatty acids, coupled with its antioxidant properties and the existence of preclinical findings suggesting the sedative and anti-anxiety effects of hemp seed extracts by influencing the benzodiazepine receivers linked to gamma-aminobutyric acid, makes it a choice for Nasya therapy in clinically managing insomnia. A significant enhancement in scientific research efforts is imperative to maximize its potential utilization.