cbt and panic attacks

I have a question that I've asked a few times on here before but I I'm having the same conundrum again. I have textbook panic disorder. I'm scared of having panic attacks and going crazy and usually what causes my panic attacks now is derealization. Originally I guess stress caused them. Now the cycle is stress, then derealization, then panic. So, I've started cbt. And it is helping a LOT. I'm learning to quit obsessing and how to deal with my worries.
The problem is, my therapist wants the next time I have a panic attack for me to just find a chair or something, sit there and let the panic happen. Don't try to distract myself. He wants me to feel the fear and realize that nothing terrible is going to happen as a result of my panic attack. But this goes against everything I have learned on this board. Everyone here seems to say distraction is the key to dealing with derealization. Don't think about it. But if I keep distracting myself, I'm never gonna get over my fear of panic attacks. The derealization is better but I still live a life scared of the next incident. So basically I have no idea what I should do. Fight or flight? It's driving me crazy because I don't know which direction to go in. ANY responses would be greatly appreciated. Thanks everyone.