The response of 134 anxious neurotic outpatients to lorazepam, diazepam, and placebo was assessed in a 4-week double-blind trial. Both active drugs produced significantly more symptom reduction than placebo. Lorazepam, however, proved effective primarily in those patients who did not complain of sedation, and produced greatest improvement in initially sicker patients. Sedation was significantly more disturbing to lorazepam-treated patients than to diazepam-treated patients. Present findings suggested that 3 mg/day of lorazepam may be too high a dosage for mildly anxious patients, while 15 mg/day of diazepam seems an appropriate dosage for mildly anxious patients but may be too low a dosage for highly anxious patients.