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Poison Ivy is known to cause severe inflammation of the skin which is medically referred to as contact dermatitis. The leaf of the plant when it comes in contact with the skin is responsible for causing instant irritation and inflammation. What makes Poison Ivy dangerous is the sap of the plant. It contains oil like substance called urushiol. When this sticky oil like substance touches the skin it results in inflammation, irritation and formation of rashes at the point of contact.