Introduction: Yoga is known to modify autonomic activity and improve stress coping abilities in normal and disease states including, as hypothesized, panic disorder which is characterized by episodic sympathetic hyperactivity and heightened anxiety. Methods: Panic disorder patients with / without agoraphobia were systematically randomized into study and control groups. The study group received drug therapy and did yoga ½ h / day for one month; the controls received drug therapy only. Anxiety and panic attack episodes were assessed before and after intervention, using Hamilton Anxiety Scale (HAS) and Hopkins symptom Checklist (SCL) respectively. Autonomic function was assessed by standard tests: deep breathing, lying-to-standing, handgrip, and Valsalva maneuver. Data of two groups were compared by Kruskal-Wallis test. Results: After the intervention, both the groups had reduction in HAS (control [16.00 ± 7.96 vs. 8.54 ± 4.20, p < 0.01], cases [12.17 ± 7.03 vs. 4.33 ± 2.07, p < 0.05]) and SCL (control [28.62 ± 11.10 vs. 11.23 ± 9.98, p < 0.01] and cases [21.67 ± 11.00 vs. 2.50 ± 3.89, p < 0.01]) scores though compliance seemed poor in study group. The study group had resting heart rate lowered, and less diastolic BP rise (16.00 ± 9.88 vs. 19.33 ± 4.32 mmHg, p = NS) on handgrip after the yoga as compared to controls (13.50 ± 11.35 vs. 24.38 ± 5.32 mmHg, p < 0.01). Conclusion: One month of yoga is an effective adjuvant therapy for panic disorder patients. Yoga acted by lowering tonic anxiety and sympathetic activity.