Trauma exposure has been associated with panic symptoms in adult samples, but little is known about the relationship between trauma and panic in children. Anxiety sensitivity (AS), or the fear of anxiety-related bodily sensations, may help explain the relationship between trauma and panic. To examine relationships among trauma, anxiety sensitivity, and panic symptoms, data were collected from youth in the New Orleans area 5-8 months after Hurricane Katrina (N = 302) and again 17-18 months after the hurricane (N = 110). At time one (T1), AS predicted panic symptoms beyond hurricane exposure. At time two (T2), AS measured at time two (T2) predicted panic symptoms beyond AS measured at T1. Clinical implications of the present findings are discussed.