Research conducted during the past decade has resulted in a range of options for treating panic disorder. Favorable responses to tricyclic antidepressants, monoamine oxidase inhibitors, selective serotonin reuptake inhibitors, and high-potency benzodiazepines have been reported. When costs and benefits are taken into account, the selective serotonin uptake inhibitors currently seem to be the treatment of choice. Studies with serotonin agonists and antagonists are as of yet disappointing. The introduction of cholecystokinin antagonists has opened up intriguing new areas of research. This paper reviews those findings and developments.