The invention provides a pharmaceutical composition for treating performance anxiety and social phobia comprising a therapeutic amount for the treatment of a patient of a .beta.-adrenergic receptor blocking compound and an anti-diaphoretic compound. The preferred .beta.-adrenergic receptor blocking compound is the lipophilic .beta.-blocker propranolol HCL. The anti-diaphoretic compound of the present invention is preferably glycopyrrolate. The composition for treating performance anxiety and social phobia can further include a pharmaceutically acceptable carrier. A method of preventing or treating performance anxiety or social phobia in a patient comprising administering the composition of the invention to a patient in need of such treatment is also provided. The composition administered in the present method comprises a therapeutic amount of a .beta.-adrenergic receptor blocking compound and an anti-diaphoretic compound.