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Psi Panic is an ability that can be used by Sectoid Commanders and the Psionic Class in XCOM: Enemy Unknown.

Cause target to panic on its following turn, if the target's Will is overcome. Robotic enemies are immune. 2 turn cooldown.

– In-Game Description, XCOM: Enemy Unknown

Description

Psi Panic immediately causes the victim to panic, which may cause the targeted enemy to fire on the player's soldiers during the player's turn, and then forces the victim to skip its next turn.

Although Psi Panic works properly in single player mode, it doesn't appear to work at all in multiplayer after Patch 1; if you somehow are playing with only Patches 2-3 then it works fine.

Tactics

To avoid being fired upon by enemies after using Psi Panic, it can be used as a Psionic soldier's first attack from stealth (either by using Ghost Armor or Mimetic Skin) on a pack of un-triggered enemies; the soldier isn't technically spotted until after the triggering event, so the panicked enemy won't have a target.

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