diff --git a/xtoskrnl/CMakeLists.txt b/xtoskrnl/CMakeLists.txt
index 7e7bef9..61c28b3 100644
--- a/xtoskrnl/CMakeLists.txt
+++ b/xtoskrnl/CMakeLists.txt
@@ -23,6 +23,7 @@ list(APPEND XTOSKRNL_SOURCE
     ${XTOSKRNL_SOURCE_DIR}/ke/kprocess.c
     ${XTOSKRNL_SOURCE_DIR}/ke/krnlinit.c
     ${XTOSKRNL_SOURCE_DIR}/ke/kthread.c
+    ${XTOSKRNL_SOURCE_DIR}/ke/panic.c
     ${XTOSKRNL_SOURCE_DIR}/ke/semphore.c
     ${XTOSKRNL_SOURCE_DIR}/ke/spinlock.c
     ${XTOSKRNL_SOURCE_DIR}/ke/timer.c
diff --git a/xtoskrnl/ke/panic.c b/xtoskrnl/ke/panic.c
new file mode 100644
index 0000000..cca6f62
--- /dev/null
+++ b/xtoskrnl/ke/panic.c
@@ -0,0 +1,65 @@
+/**
+ * PROJECT:         ExectOS
+ * COPYRIGHT:       See COPYING.md in the top level directory
+ * FILE:            xtoskrnl/ke/panic.c
+ * DESCRIPTION:     System shutdown and kernel panic mechanism
+ * DEVELOPERS:      Rafal Kupiec <belliash@codingworkshop.eu.org>
+ */
+
+#include <xtos.h>
+
+
+/**
+ * Crashes the system upon detecting a fatal error in which either it is unable to recover or continue to run system.
+ *
+ * @param Code
+ *        Specifies the reason for the kernel panic.
+ *
+ * @return This routine does not return any value.
+ *
+ * @since XT 1.0
+ */
+XTAPI
+VOID
+KePanic(IN ULONG Code)
+{
+    KePanicEx(Code, 0, 0, 0, 0);
+}
+
+/**
+ * Crashes the system upon detecting a fatal error in which either it is unable to recover or continue to run system.
+ *
+ * @param Code
+ *        Specifies the reason for the kernel panic.
+ *
+ * @param Parameter1
+ *        Supplies additional information about the kernel panic.
+ *
+ * @param Parameter2
+ *        Supplies additional information about the kernel panic.
+ *
+ * @param Parameter3
+ *        Supplies additional information about the kernel panic.
+ *
+ * @param Parameter4
+ *        Supplies additional information about the kernel panic.
+ *
+ * @return This routine does not return any value.
+ *
+ * @since XT 1.0
+ */
+XTAPI
+VOID
+KePanicEx(IN ULONG Code,
+          IN ULONG_PTR Parameter1,
+          IN ULONG_PTR Parameter2,
+          IN ULONG_PTR Parameter3,
+          IN ULONG_PTR Parameter4)
+{
+    KeDbgPrint(L"Fatal System Error: 0x%08lx\nKernel Panic!\n\n", Code);
+    for(;;)
+    {
+        ArClearInterruptFlag();
+        ArHalt();
+    }
+}