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Xanax is the branded name for the generic medication called alprazolam. Xanax is a prescription drug used to treat anxiety disorders and anxiety that is caused by depression. It can sometimes also be used for sleeping disorders (such as insomnia) but on an off-label basis following a medical consultation with a doctor or healthcare provider. Xanax is also used to treat patients suffering from panic disorders / panic attacks induced by situations that cause panic such as embarrassment, social anxiety, and helplessness. Xanax is a drug that works by regulating abnormal excitement stimulation in the brain.