Etifoxine hydrochloride is primarily used in the treatment of anxiety disorders. It helps alleviate symptoms of anxiety by modulating the GABAergic system, which promotes relaxation and reduces stress. It is often prescribed for short-term management of generalized anxiety and adjustment disorders. Additionally, it has shown potential in treating neuropathic pain due to its neuroprotective properties. In some cases, it is used as an alternative to benzodiazepines, offering a similar anxiolytic effect with a lower risk of dependence. It is also being studied for its role in promoting nerve regeneration and recovery in neurological conditions.