Insomnia is associated with numerous psychiatric and physical conditions, and hyperarousal is known to play an important role in the development of insomnia. There are a lot of limitations to use hypnotic medications for the treatment of insomnia. As psychological factors can greatly affect the development and progress of insomnia, several non-pharmacological treatment methods have been used for insomnia. Biofeedback is effective in the treatment of insomnia and its treatment effect lasts considerably long. Biofeedback together with relaxation techniques can reduce levels of arousal in insomnia patients so that they are effective for induction and maintenance of sleep. In conclusion, biofeedback treatment seems to be very helpful for insomnia patients who show high levels of arousal and have limitations in the use of hypnotic medications.