It is well documented throughout the hadiths or traditions of the Prophet Muhammad (peace be upon him) that the use of perfumes carries many blessings, and that it was one of the few things of this world beloved to him. Muslims are encouraged to wear perfume during daily prayers, especially on Fridays and during the Eid celebrations. In other hadiths it is also related that the Prophet (PBUH) would never reject gifts of perfume.
Attar is known by many names: ittar, itr, atr or simply perfume oils, and is a type of natural perfume extract from flowers, herbs, spices or barks. It is very popular in the Middle East, South Asia and parts of Africa. Attar is the most common form of concentrated perfume. Attars are natural perfumes for daily use, are not injurious to health as alcohol can be, and are suitable for both men and women. These days due to the lack of the original raw materials and resources, many are synthetically manufactured to replicate the original scents.
Since ancient times, many peoples have used attars as a perfume. They were particularly popular with nobles in the romantic stories of a bygone era. It was a customary practice of nobility to offer attar to their guests at the time of their departure. The attars are traditionally presented in ornate tiny crystal cut bottles called "itardans." Because of its concentrated form, attar is sold in small bottles.
Although the origins of perfumery predate Islam, the greatest advancements in the art of making perfumes through distillation came from Muslim chemists. Many centuries later, around the 14th century, knowledge of perfumery came to Europe partially as a result of the spread of Islam.
For more info on perfumes and oils see these Wikipedia articles: