Although a number of recent studies have shown that panic disorder is associated with deterioration in quality of life and social dysfunctions, details of these impairments and their correlates have not been well studied. The present study aims to examine which aspects of quality of life and social functioning were particularly impaired in patients with panic disorder and to search for their clinical correlates. Fifty patients with panic disorder with or without agoraphobia who participated in our group cognitive-behavioral treatment program were administered the Medical Outcomes Study Short-Form Health Survey and the Work, Home and Leisure Activities Scale. Their panic disorder symptomatology was assessed with the Panic Disorder Severity Scale and Fear Questionnaire. Compared with the population mean, the patients reported less than average quality of life in both physical and mental domains, especially in the latter domain. They also reported substantial social dysfunctions, especially in work and social leisure activities. Different aspects of patients' psychopathology were associated with these impairments. While agoraphobia appeared as a consistent predictor for most of the aspects examined, social phobia emerged as a strong predictor for mental quality of life and for work and social leisure functions. The findings suggest that we need to remain sensitive to different aspects of functional impairments of patients with panic disorder and that we may need to pay more attention to the role of social anxiety in their treatment.