Despite the enormous progress in the pharmacological and cognitive-behavioual treatments of panic disorder over the last 30 years, many patients continue to suffer from persisent personality problems and panic vulnerability. Based on extensive clinical experience and written by experts in the field, this text suggests that psychodynamic approaches can aid both psycopharmacological and cognitive-behavioural treatments and often resolves panic symptoms in many patients when used alone. It catalogues psychological factors commonly present in panic disorder patients and describes how to address them within a psychodynamic psychotherapy. Clinical vignettes and a complete case example illustrate the psychodynamic approach of this disorder. Other treatment issues including defence mechanisms, transference and termination of treatment, common problems encountered in treating these patients, and the combination of this method with other approaches are also covered.