Oxytocin, a neuropeptide, plays a significant role in modulating social behavior and has been widely studied for its potential impact on mental health disorders. This review examines the neurobiological mechanisms through which oxytocin influences mental health and its therapeutic potential in conditions such as autism spectrum disorder, schizophrenia, PTSD, anxiety, and depression. Oxytocin enhances social bonding, trust, and empathy by modulating neural circuits linked to social interactions. Studies indicate that oxytocin’s ability to regulate the hypothalamic-pituitary-adrenal (HPA) axis plays a vital role in stress response and emotional regulation. Therapeutic applications, particularly intranasal administration of oxytocin, have shown promise in alleviating symptoms and improving patient outcomes. However, personalized approaches are essential to optimize treatment effectiveness. Despite its potential, challenges remain in understanding the mechanisms underlying its effects and identifying the patient populations that would benefit most from such therapies. Future research should focus on elucidating these mechanisms, exploring the long-term efficacy of oxytocin-based interventions, and advancing personalized medicine to maximize its clinical utility.
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