The authors investigated the effect of external Qi-therapy (EQT) on changes in encephalograms (EEGs) and circulating cortisol concentrations. Ten college students participated in crossover sessions, receiving EQT or placebo treatment with their eyes open. Subjects reported improved emotions of satisfaction, relaxation, and calmness during EQT as compared to levels reported during placebo treatments. There were significant differences in the proportions of alpha and beta EEG waves between the two sessions, and the relative strengths of alpha waves were higher during EQT than during control sessions (p < .05). Plasma cortisol concentrations during EQT were significantly lower than during control sessions p < .05). Thus, Qi-therapy was more effective in inducing relaxation than placebo treatment.