Most of the people face trauma, in one or the other form, in their lives. In 10 % of such a people the trauma is followed by post–traumatic stress disorder (PTSD) which has been classified in the category “Trauma and Stressor related disorders” in DSM–5. Psychotherapy is the principal therapy for PTSD, but it is effective only in 30 % patients. Different therapeutic targets are being explored for the treatment of PTSD. Most of the research has focussed on adrenergic and hypothalamic–pituitary–adrenocortical systems. Also, there are studies on serotonergic, dopaminergic, opioid, GABA–ergic, glutamatergic and cannabinoid receptor mechanisms. Only two serotonin reuptake inhibitors (SSRIs), sertraline & paroxetine, have been approved for treatment of PTSD by the US FDA, which show only 30 % remission rate after 12 weeks of treatment. Neuropeptide oxytocin (OT) shows widespread behavioral effects and numerous potential therapeutic benefits. Functional magnetic resonance imaging (fMRI) studies concurrently with OT administration show brain regions that are strongest targets for OT to influence human behavior. Intranasal oxytocin has been found to be a promising pharmacological therapy to boost the treatment response to PTSD.