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Our aim in this investigation was to evaluate the moderating role of perceived health in the relation between smoking rate and panic variables in a community-based sample of 220 daily smokers (98 females; Mage=23.76 years, SD=8.76). As hypothesized, the interaction between smoking and perceived health incrementally predicted anxiety sensitivity (fear of anxiety) and anxious arousal symptoms, but not depressive symptoms. Individuals who had higher smoking rates and lower perceived health reported higher levels of anxiety sensitivity and anxious arousal, but not depressive symptoms. The primary implication of these findings is that there may be segments of the cigarette smoking population who are at relatively greater risk for anxiety symptoms and fear of bodily sensations by virtue of individual differences in perceived health. The identification of such moderating effects is clinically important, because it helps to refine our understanding of complex associations between drug behavior and panic vulnerability.