The Hypnosis and Psychosomatic Medicine Section of the Royal Society of Medicine (RSM) believe the therapies help relieve pain and stress.
But it warned patients need to be protected from rogue practitioners, who cause harm and end up costing the NHS more.
Jacky Owens, the president of the RSM's Hypnosis Section, said: "Conditions such as depression, pain and irritable bowel syndrome affect millions of people in the UK and a great cost to the NHS. But hypnosis can often work where other treatments have been unsuccessful."
Ms Owens, a qualified nurse who uses hypnosis in her work with cancer patients added: "If doctors were able to refer patients to properly trained hypnotherapists, it would save a cash-strapped NHS a great deal of money."
She said making hypnosis a standard part of the "NHS toolbox" would lead to the public becoming better informed about the procedure and mean that vulnerable patients would be less likely to turn to "hypno-cowboys".
The group fear non-medically trained hypnotists frequently lack the understanding of the diseases their patients have, so can cause real harm. It said many of the quack operators use damaging techniques to treat people with psychological conditions, like inducing "false memories" as they believe current problems stem from past traumas so terrible that the memory of them has been suppressed.
Dr Peter Naish, the president-elect of the section, said: "There's very little evidence, either from laboratory research or real life, that we can suppress traumatic memories - people suffering from post-traumatic stress disorder would love to be able to do so."
Ms Owens added: "That's a small step but we're confident that with more research, hypnosis will be recognised as an extremely useful tool to be used alongside mainstream medicine. What we need are doctors, dentists, nurses, psychologists, physiotherapists, radiotherapists - the whole gamut of people who treat patients - trained in using hypnosis as another tool in their treatment programme."
She called on the Government to review the issue.