Adolescents ages 12-17 who meet DSM-IV-C/P criteria for panic disorder with or without agoraphobia may be eligible for this treatment study. Adolescents may be eligible to participate in this research project whether or not they are currently taking a prescribed psychotropic medication; however, if they are taking a psychoactive medication, there must be a 1-month stabilization period (for benzodiazepines) or 3-month stabilization period (for SSRIs, SNRIs or tricyclics) prior to the initial diagnostic assessment (this is a requirement of all children and adults being evaluated at the Center for Anxiety and Related Disorders). No medication will be administered as part of this study. In addition, adolescents must be accompanied by one parent or caregiver for the duration of treatment.