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Xanax is a medication used to treat anxiety and panic disorders, as well as posttraumatic stress disorder (PTSD). It\'s classified as a benzodiazepine, which also goes by names like alprazolam, diazepam and meperidine. Xanax is a medication used to treat anxiety and panic disorders, as well as posttraumatic stress disorder (PTSD). It\'s classified as a benzodiazepine, which also goes by names like alprazolam, diazepam and meperidine.