Tea tree oil (TTO) from the genus Melaleuca L. has antimicrobial, antibacterial, antifungal, and antioxidant properties and is used by the cosmetic, pharmaceutical, and horticultural industries. In Pakistan, Melaleuca bracteata can be exploited for essential oil purposes, as this species is well adapted to Pakistan’s agroclimatic conditions. The objective of the present study was to evaluate the yield of M. bracteata essential oil together with its antioxidant and antimicrobial properties under local prevailing conditions of the subtropics. Essential oil was extracted through the hydrodistillation method. Using this method, six batches of 8 kg samples (fresh leaves and branches) underwent a distillation process for 4–5 h. The average yield obtained was about 0.2%. The GCMS was used to identify the components of extracted essential oil. Eugenol methyl ether is the major component in extracted essential oil, i.e., 96% of the total. A high content of flavonoids and phenolics and a Fe-reducing power ability of M. bracteata were observed. The oil was also found effective against B. subtilis, B. cereus, White rot, and A. flavus. Hence, it is concluded that there is a possibility to use TTO for its biocidal properties, and it must also be inspected and then commercialized in Pakistan by the agriculture and cosmetic industries.