NUTMEG is used treating diarrhea, nausea, stomach spasms and pain, and intestinal gas. It is also used for treating cancer, kidney disease and trouble sleeping (insomnia). is used as a spice and flavoring agent in food. Nutmeg is applied to the skin to kill pain, especially pain caused by mouth sores, and toothache. Nutmeg contains chemicals that might affect the central nervous system. Nutmeg might also kill bacteria and fungi.