This is the 3087th most frequent French word.
panique
Extreme fear or sudden, uncontrollable anxiety.
Here, 'panique' is a noun, describing the emotion of panic that the subject experiences.
Elle a ressenti une panique soudaine en entendant les sirènes.
She felt sudden panic upon hearing the sirens.
In this case, 'panique' is a verb ('panique' a conjugation of 'paniquer'), used as a command to instruct someone not to panic.
Ne panique pas, tout va bien se passer.
Don't panic, everything will be fine.
Here, 'de panique' is used to express the pervasive feeling of panic in the setting described.