Xanax is an oral prescription that helps to treat anxiety disorder, panic disorder, and phobia with or without agoraphobia. It belongs to the benzodiazepine group of drugs that increases the activity and functions of GABA levels. Benzodiazepines are sedatives that slow the brain and central nervous system (CNS). It acts by increasing the level of GABA in the body and enhancing the activity and function of neurotransmitters.