Coconut oil has many medicinal properties, including a reduction of inflammation in inflamed muscles and joints. A study published in the journal Pharmaceutical Biology showed that virgin coconut oil has anti-inflammatory and analgesic properties. Coconut oil has high levels of lauric acid which helps reduce inflammation. Another study that looked into the antioxidant properties of coconut oil found that extracts from it were just as effective as Indometacin, a popular NSAID only available with a prescription. To use coconut oil to relieve hand pain, always make sure that you buy virgin coconut oil. All you have to do is massage some into the affected area. You can also add some essential oils to make it even more effective.