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This ingredient gets a bad rep because it is irritating and drying due to its astringent property. Astringents draw out natural oils in tissue to constrict pores and dry out your skin.

However, alcohol denat. is not all that bad.

Due to its low molecular weight, alcohol denat. tends to evaporate quickly. One study on pig skin found half of applied alcohol evaporated in 10 seconds and less than 3% stayed on skin.

This also helps other ingredients become better absorbed upon application.

Studies are conflicted about whether this ingredient causes skin dehydration. One study from 2005 found adding emollients to propanol-based sanitizer decreased skin dryness and irritation. Another study found irritation only occurs if your skin is already damaged.

Small amounts of alcohol are generally tolerated by oily skin or people who live in humid environments.

The rule of thumb is this ingredient will probably not affect your skin much if it is near the end of an ingredients list.

One thing to note:
People with ALDH2 (aldehyde dehydrogenase 2) deficiency may experience skin irritation from continued alcohol use. About 8% of the world's population have this deficiency.

The Cosmetic Ingredient Review Expert Panel has determined denatured alcohols to be safe for use in concentrations between 0.05% and 12% (depending on which denaturant is used).

Also...

This ingredient has antimicrobial and solvent properties.

The antimicrobial property helps preserve products and increase their shelf life. As a solvent, it helps dissolve other ingredients.

Look for formulas that contain glycerin, hyaluronic acid, or panthenol if you want to offset any drying effect.

This ingredient will trip away your skin's natural oils/lipids that help it lock in moisture. This can worsen dryness, trigger eczema flare-ups, and aggravate rosacea.

Be sure to patch test any product with this ingredient if you have dry or sensitive skin, eczema, or rosacea.

These compounds allow centella to dial back inflammation, encourage the skin to build and hold onto collagen, support the barrier and hydration, and bring solid antioxidant activity to protect against signs of aging.

Centella also carries a nice supporting cast of Vitamin A, vitamin C, several B vitamins, and amino acids. Put it all together and you get an ingredient that soothes, hydrates, and protects, all at once.

Most of centella's magic comes from the four big compounds (Asiaticoside, Madecassoside, Asiatic Acid, and Madecassic Acid). These are the actives doing the heavy lifting in almost every centella study.

Here is the short version of what they do in the skin:

So it is not just soothing for the sake of soothing. Centella calms the skin AND helps it rebuild.

Just FYI, not all centella on an ingredient list is the same. What you are getting actually depends on the extract:

Fun fact on the ratios: the leaves tend to be richest in Madecassoside and Asiaticoside, and lower in the two acids. The exact amounts shift with where the plant is grown and how it is processed. This means purity really does vary brand to brand.

Centella is one of the most easygoing actives out there.

It layers well with basically everything: niacinamide, hyaluronic acid, peptides, and vitamin C, and also pairs nicely with stronger actives like retinoids and exfoliating acids where it can help take the edge off irritation.

On the safety side, centella and its triterpenes are classified as weak sensitizers, meaning allergic reactions are possible but uncommon.

Patch tests at 1% and 5% came back negative in test panels, and creams at typical use levels did not cause allergic reactions across large groups of people.

But as with any new active, a patch test is still a smart move for very reactive skin.

Centella is widely used because it is effective at low percentages. For context, human safety testing found no meaningful irritation from creams containing centella extract at everyday use levels (the tested amounts were well under 1%).

The irritancy threshold in animal testing was also above 30% (so real-world formulas sit far below anything concerning).

In collagen lab studies, higher concentrations drove more collagen synthesis, so serums built around centella tend to feature it more prominently.

Bottom line: you will find centella working nicely anywhere from a fraction of a percent up to hero-ingredient levels depending on whether it is a supporting soother or the main event.

Fun fact: Centella has been used as a medicine and in food for many centuries. As a medicine, it is used to treat burns, scratches, and wounds.

Like other emulsifiers, this ingredient can cause mild skin irritation or sensitivity in a small amount of people. A patch test is reasonable if you have sensitive skin.