The present review summarizes empirical developments in the psychosocial treatment of panic and panic disorder by focusing on four key themes that have been emphasized in this literature: (a) treatment efficacy, effectiveness, and innovation; (b) modulating and process variables in treatment; (c) effective dissemination of treatment; and (d) prevention of panic. Cognitive behavioral treatments (CBTs) for panic are very good, even in the context of comorbidity, but the level of efficacy does not appear to be increasing over time. Unfortunately, there have been relatively few substantive innovations in CBT protocols since the 1980s, and despite progress in the use of computer technology, dissemination of these treatments is lagging. The prevention of panic-spectrum psychopathology is a promising area linked with advances in the identification of panic-relevant risk factors that appear to modulate CBT outcomes.