This review assesses the parallel literature on the role of gamma‐aminobutyric acid (GABA) in memory and anxiety. We review historical and new data from both animal and human experimentation which have helped define the key role for this transmitter in both these mental states. By exploring the overlap in these conditions in terms of pharmacology, brain circuitry, and clinical phenomenology, we begin to develop a theory that the two conditions are intrinsically interrelated. The role of GABAergic agents in dissecting out and demonstrating this interrelationship and in pointing the way to future research is discussed. Depression and Anxiety 4:100–110, 1996/1997.