A review of family and twin studies using specified diagnostic criteria shows the highly familial nature of panic disorder and suggests evidence for a genetic etiology. The population-based lifetime rates of panic disorder cross-nationally range between 1.2/100 and 2.4/100, whereas, the lifetime rates in first-degree relatives of panic probands range between 7.7/100 and 20.5/100. There is evidence from family and twin studies for the separation of panic disorder and generalized anxiety disorder. While there is a substantial comorbidity in individuals between panic disorder and major depression, these two disorders are separate conditions which are independently and specifically transmitted within families. The mode of transmission of panic disorder remains unclear. The high lifetime rates of panic disorder, strong evidence for vertical transmission, and the potential biological markers have increased interest in the application of modern linkage techniques. Several genetic linkage studies of panic disorder are ongoing.