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Inositol usually refers to a specific stereoisomer called myo-inositol. Inositols are pseudovitamin compounds that are falsely said to belong to the B-complex family, and are found in most foods but in highest levels in whole grains and citrus fruits.
Myo-inositol shows the most promise as a dietary supplement for promoting female fertility, restoring insulin sensitivity in instances of resistance (type II diabetes and polycystic ovarian syndrome being the most well investigated), and for reducing anxiety as well. Due to the mixed benefits to insulin resistance and fertility, myo-inositol is considered a good treatment for PCOS in women.
It also holds some promise as an anti-depressant (although not as impressive as its anxiolytic and anti-panic effects) and against some other conditions associated with anxiety such as panic disorders and binge eating. It is relatively ineffective for schizophrenia and autism, and has failed in treating PTSD despite its anti-panic effects. (Ref)