Many essential oils and their terpene constituents display antimicrobial properties, which may affect rumen metabolism and influence milk production parameters. Many of these compounds also have distinct flavors and aromas that may make their way into the milk, altering its sensory properties. Essential oils from caraway (Carum carvi) seeds and oregano (Origanum vulgare) plants were included in dairy cow diets to study the effects on terpene composition and sensory properties of the produced milk, as well as feed consumption, production levels of milk, and methane emissions. Two levels of essential oils, 0.2 and 1.0 g of oil/kg of dry matter, were added to the feed of lactating cows for 24 d. No effects on feed consumption, milk production, and methane emissions were observed. The amount and composition of volatile terpenes were altered in the produced milk based on the terpene content of the essential oils used, with the total amount of terpenes increasing when essential oils were added to the diet. Sensory properties of the produced milk were altered as well, and milk samples from animals receiving essential oil treatment were perceived as having a fresher aroma and lower stored aroma and flavor. The levels of essential oils used in this study mimic realistic levels of essential oils in herbs from feed, but were too low to affect milk production and methane emissions, and their inclusion in the animal diet did not adversely affect milk flavor.