Xanax helps treat anxiety disorders and anxiety caused by depression. It also helps treat panic disorders. Xanax is a member of the benzodiazepine drug class that works by enhancing the activity of certain neurotransmitters in the brain. Xanax is available in the form of a tablet, an extended-release tablet. It is also available in the form of an orally disintegrating tablet (a tablet that dissolves quickly in the mouth) and a concentrated solution or liquid.