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This is a prescription medication used to treat anxiety and panic disorders. It's a type of benzodiazepine, which works by calming the brain and nerves. Like other benzodiazepines, Xanax has a risk of dependency and withdrawal symptoms if used long-term. Primary Use: Management of anxiety and panic disorders. How it Works: A benzodiazepine that enhances the effects of a neurotransmitter called GABA, which has a calming effect on the brain and nerves. Common Situations: Prescribed for short-term relief of anxiety symptoms, panic attacks, and sometimes for sleep disturbances related to anxiety.