In this chapter we review current treatments for panic disorder with or without agoraphobia. The first section covers pharmacotherapeutic approaches, and the second section covers psychotherapeutic approaches and discusses combining these strategies. The treatment recommendations stem from a combination of practice guidelines (e.g., American Psychiatric Association Work Group on Panic Disorder 1998; Bandelow et al. 2002), the published scientific literature, and the authors' clinical experience. For the most part, we will reference seminal reports stemming from double-blind, randomized controlled trials (RCTs) and authoritative review papers and will limit citing of uncontrolled case reports or open-label treatment series to areas (e.g., psychodynamic psychotherapy) where no other literature exists. We will also avoid providing specific dosing recommendations for particular drugs, as this information is better obtained from other sources that are frequently updated (e.g., manufacturers' Web sites). We will not discuss the treatment of panic disorder in special populations (e.g., older adults, children, pregnant women), thereby acknowledging that these topics require additional consideration that cannot be accomplished in the space allotted to us.