Xanax works by enhancing the activity of a neurotransmitter in the brain called gamma-aminobutyric acid (GABA). GABA helps to regulate brain activity, and when Xanax is taken, it increases the inhibitory effects of GABA, leading to a sense of relaxation and reduced anxiety. Xanax is a brand name for the drug alprazolam. It is classified as a benzodiazepine, a group of medications known for their calming and sedative effects on the central nervous system. Xanax is available in both immediate-release and extended-release forms.