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The distressed contestant is then heard saying: 'I have a really bad fear of spiders.'
A paramedic helps Michelle as she tries to calm herself.
Meanwhile, teammate Kim is left battling the clock to finish their section of the backyard reno.
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Kim yells: 'We've got 10 minutes left,' while a still distressed Michelle still tries to gather her breath, telling the paramedic: 'I think I'm going to faint.'
Sitting on the ground, a very stressed Michelle attempts to regain her composure.
Later, Michelle tells: 'I was bringing in furniture and there were big huntsman's on the back of it. I realised after I'd carried it in and I have a really bad phobia.
'It's not just, I'm not just scared them it's an actual phobia. I feel like I have an illness,' adding, 'It just escalated the more and more - I couldn't get them out of my head.'
'I've never, ever felt like that before.'
Recomposing herself, Michelle tells the paramedic: 'I can feel it, it's gone now.'
With only nine minutes left to complete their zone, Kim and Michelle frantically race to the finish.
'I feel like I let us down,' Michelle says once the round is complete. 'I had a panic attack and I don't know how long that was going for - I can't remember.'
'I just feel like I let us down as a team.'
The Backyard Reveals continue on Thursday night, on Channel Seven.