Shirodhara is an ayurvedic therapy that involves free fall of a stream of medicated fluid at a controlled temperature for a specified time onto the forehead of a person (Shiro means "head" and dhara means "flow" in Sanskrit). The treatment induces a relaxed state of awareness that results in treating neurological conditions like mental stress (depression/anxiety/hypertension) and some of its beneficial side effects are soothing the central nervous system. The continuous flow of medicated liquid on the forehead is believed to stimulate the Ajna chakra (the third eye), which is associated with intuition and spiritual awareness. In this study, Shirodhara with “Ksheerabala thailam” medicinal oil was conducted on 16 healthy subjects. This research focuses on the pre and post Shirodhara analysis of brain signals collected using an electroencephalography (EEG) during 7 days of Shirodhara treatment. The effectiveness of treatment was studied by calculating the spectral power of theta, alpha and beta bands and then the band ratios were analysed pre-post treatment for all 7 days. This study also expands in measuring Physiological parameters like Blood Pressure, Body Temperature, Pulse rate, breathing rate and psychological parameters like Hamilton Depression Rating Scale (HAM-D), Patient Health Questionnaire (PHQ-9), World Health Organization -Five (WHO-5) Well-being index were also calculated at the start - end of the shirodhara treatment protocol. The results obtained from EEG studies were in consonance with the outcomes of physiological and psychological parameters which indicates the subject feels very relaxed with conscious state and tranquillity of the mind is achieved.