In antiquity, the plant was known as herba militaris for its use in stanching the flow of blood from wounds. Other names implying its historical use in healing—particularly in the military—include bloodwort, knight's milfoil, staunchweed, and, from its use in the United States Civil War, soldier's woundwort. Its use in either starting or stopping nosebleeds led to the common name nosebleed. For its association with the Abrahamic devil it was called bad man's plaything, devil's nettle, and devil's plaything. It was called old man's pepper due to its pungent flavor, while the name field hop came from its use in beer making in Sweden.

A. millefolium was used in traditional medicine, in part due to its astringent properties and the mild laxative effect of its leaves. Yarrow and its North American varieties were traditionally used by many Native American nations. The Navajo historically considered it a "life medicine" and chewed the plant for toothaches and used its infusions for earaches. The Miwok in California used the plant as an analgesic and head cold remedy. Native American nations used the plant for healing cuts and abrasions, relief from earaches and throat infections, as well as for an eyewash. Common yarrow was used by Plains indigenous peoples to reduce pain or fever and aid sleep.

In the early 20th century, some Ojibwe people used a decoction of yarrow leaves on hot stones and inhaled it to treat headaches, or applied decoctions of the root onto skin for its stimulating effect.

There's no established standard dosing for yarrow, although daily dosing of up to 500 mg has been used safely for up to a year in one human study.

Achillea millefolium is cultivated as an ornamental plant by many plant nurseries. It is planted in gardens and natural landscaping settings of diverse climates and styles. They include native plant, drought-tolerant, and wildlife gardens. The plant is a frequent component of butterfly gardens. The plant prefers well-drained soil in full sun, but can be grown in less ideal conditions.

Propagation

For propagation, seeds require light for germination, so optimal germination occurs when planted no deeper than 6 mm (1⁄4 in). Seeds also require a germination temperature of 18–24 °C (64–75 °F). It has a relatively short life in some situations, but may be prolonged by division in the spring every other year, and planting 30 to 46 cm (12–18 in) apart. It can become invasive.

Yarrow can cause allergic skin rashes. It reportedly can induce menstruation and cause miscarriages.

According to the American Society for the Prevention of Cruelty to Animals, yarrow is toxic to dogs, cats, and horses, causing increased urination, vomiting, diarrhea and dermatitis. When consumed by cows, an unfavorable flavor is given to their milk. In a standard rodent model for reproductive toxicity, aqueous extracts of yarrow produced a significant increase in the percentage of abnormal sperm.