What is Carbamazepine? Carbamazepine (CBZ), sold under the tradename Tegretol among others, is a medication used primarily in the treatment of epilepsy and neuropathic pain. It is not effective for absence seizures or myoclonic seizures. It is used in schizophrenia along with other medications and as a second line agent in bipolar disorder. Carbamazepine appears to work as well as phenytoin and valproate.