Xanax is primarily prescribed to treat anxiety and panic disorders. It is used to alleviate the symptoms of excessive anxiety, nervousness, and tension associated with these conditions. Occasionally, it may be prescribed for the short-term relief of anxiety before certain medical procedures or for insomnia (sleep problems) related to anxiety.

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Alprazolam works by enhancing the effects of a neurotransmitter in the brain called gamma-aminobutyric acid (GABA). GABA is responsible for inhibiting brain activity, and by increasing its effects, Xanax helps to reduce overactivity in the brain, leading to its calming and relaxing effects.