Xanax is a medication that is used to treat anxiety and panic disorders. It works by increasing the levels of a neurotransmitter called GABA in the brain, which helps to reduce anxiety and promote relaxation. Xanax is typically taken as needed, but some people may need to take it on a regular basis to maintain their anxiety levels. Xanax can be taken with or without food, but it is important to take it at the same time each day to avoid missing a dose. Xanax can cause side effects such as drowsiness, dizziness, and dry mouth. However, these side effects are typically mild and go away on their own.