The objective of this study was to evaluate the effect of tea tree essential oil (Melaleuca alternifolia) on postharvest rots caused by Botrytis cinerea and on the sensory quality of ‘Albion’ strawberries. The experiment was conducted with fruits from a production area in Lages, Santa Catarina, Brazil. The treatments consisted of a control (without essential oil) and tea tree essential oil at 50 and 250 µL L⁻¹, applied by fumigation. After treatment, the fruits were stored for three days. Rot incidence and severity, respiration and ethylene production, flesh penetration force, soluble solids, titratable acidity, skin color, total phenolic compounds, peroxidase activity, and volatile profile were evaluated. Tea tree oil reduced the development of B. cinerea at both concentrations. It also delayed red color development and reduced total phenolic content. At 250 µL L⁻¹, the oil increased respiration rate and reduced peroxidase activity. Ethylene production, titratable acidity, soluble solids, and flesh penetration force were not affected. The volatile profile was altered, with lower levels of characteristic strawberry volatiles and greater presence of terpene compounds typical of tea tree oil, especially at the higher concentration. Thus, tea tree oil reduced disease development but caused undesirable changes in fruit color and aroma profile.