Summary: New and possibly contradictory findings about panic disorder and agoraphobia require careful analysis of clinical investigations. Such analysis suggests that past definitions of panic disorder may be too broad, that diagnostic criteria for panic disorder may not be sufficiently specific, and that poor design of published studies may at least partially invalidate their findings. Despite these shortcomings, however, it appears that panic disorder and agoraphobia can be treated effectively with pharmacotherapy and psychotherapy, although results seem to be highly individualized. A combined psychotherapy and pharmacotherapy approach may be an attractive treatment option for social phobia.