I honestly don't know about panic and anxiety, but it works really well for sleep and would recommend it to anyone before getting a prescription. My son has Asperger's syndrome and had to take sleep meds for a long time. The Valarian works just as well as anything else they put him on. You can buy it in a liquid and and dropperful does the job for the night. The taste isn't the best but not as bad as some. If your panic/anxiety keeps you up, start by trying it for that and go from there. Oh...and I never had problems waking up after taking it...unlike Melatonin which usually leaves me groggy. I think you could experiment with it during the day, but you might want to do a little more research first.