An integrated theoretical conceptualization of the cooccurrence of panic disorder and smoking (PDSM) is presented. First, the nature and prevalence of this apparently costly, yet largely unrecognized, co‐occurrence of health care problems is described. Second, a theoretical analysis regarding how smoking may negatively impact panic disorder is described. Third, the negative impact of panic disorder on smoking outcomes is discussed. Finally, primary implications of this conceptualization for the research and treatment of individuals with PDSM are elaborated, including the need to assess for smoking among persons with panic disorder and the potential need for specialized treatment approaches.