Ambien and Xanax are both prescription medications but used for different purposes. Ambien (zolpidem) is a sedative-hypnotic designed specifically for short-term treatment of insomnia by helping users fall asleep quickly. Xanax (alprazolam) is a benzodiazepine used primarily for anxiety and panic disorders by calming the central nervous system. Ambien’s side effects include sleepwalking, memory problems, and next-day drowsiness, while Xanax may cause dependence, sedation, and withdrawal symptoms. Xanax has a higher risk of addiction, and both drugs should be used cautiously. Their choice depends on whether the primary issue is insomnia or anxiety, under medical supervision.