1. Panic states are defined and conditions favoring their occurrence presented.2. The acute course and good recovery are noted in an unexpectedly large number. The forms of these psychoses ape all known types, and defy rigid classification. The practice of diagnosing them "psychosis, unclassified, as manifested by . . . ." as recommended by Colonel W. C. Porter of the School of Military Neuropsychiatry Lawson General Hospital, has been found useful.3. Most of our patients with panic states had an obviously poor pre-induction social history. Estimation of the total personality has been found more valuable than the study of "traits" or family history. Most of our panic cases were recruited from the following groups: (I) the mentally deficient; (2) the emotionally immature; (3) psychopathic personalities; (4) tension depressions.4. Means of preventing panic are presented in detail. The basic principle consists of helping the individual improve and maintain his personality, organization or integrity under stress by better "orientation" or morale.5. Treatment measures of acute panic states are presented, with the belief that select cases may be reclaimed for duty.