Elimite (permethrin) is commonly used for the following conditions caused by tiny insects: Head lice, Scabies (pestilent scabies mite). Permethrin kills tiny insects, such as head lice and mites, by disrupting their nerves and muscles. Similarly to all naturally occurring pyrethrins, Elimite permeates the nervous system of parasites leading to the disruption of sodium cation inflow throughout cell membrane ion channels. Subsequently, the insect dies.