The 8 top destinations to explore in Panama

Panama offers much more than its iconic canal.

While the canal is a must-see, this Central American gem boasts countless islands, vibrant tropical forests, and miles of unspoiled coastline along two oceans, ensuring you'll be enchanted for weeks.

Nestled between Costa Rica and Colombia, this slender land bridge and biological hotspot may be small, but it’s bursting with wonders.

From a modern capital brimming with impressive skyscrapers to the serene beauty of the Guna Yala Archipelago, you'll likely want to extend your stay. Especially when you discover the thrill-seeking adventures in the highlands near Boquete and the island-hopping experiences in Bocas del Toro.

These are the top destinations to explore in Panama.

1. Panama City

Central America’s most fashionable capital tells a story of three cities. The downtown area is a bustling center of international finance, with towering skyscrapers, luxurious shopping centers, and fine dining. Across the bay, only the tombstone-like remains of the original city, Panama Viejo, stand after being plundered by pirates in 1671.

Next up is Casco Viejo, which has transformed into the trendiest area of the city after an extensive restoration. Boutique venues like the American Trade Hotel and chic rooftop restaurants and bars, such as Casa Casco, now occupy the pastel-hued colonial mansions that line its cobblestone streets.

Planning tip: For a break from the city hustle, explore the trails of Parque Natural Metropolitano, or cycle along the picturesque Amador Causeway, where the striking BioMuseo, designed by Frank Gehry, showcases the natural and cultural heritage of the isthmus.

2. Panama Canal

Known as the world’s most renowned shortcut, the Panama Canal – affectionately called “the big ditch” – has served as a crucial trade link between the Pacific and Atlantic oceans since its opening in 1914. This remarkable engineering achievement operates 24/7, handling over half a billion tons of cargo annually.

Planning tip: The best spot to observe the canal in action is from the viewing platforms at the four-story Miraflores Visitor Center – aim to coincide your visit with a mega-ship’s arrival, and be sure to catch the 3D film. You can also experience the locks up close on a partial (six to seven hours) or full (10 to 12 hours) canal transit with Ancon Expeditions.

3. Boquete

Thrill-seekers should visit the highland town of Boquete, where they can choose from activities like rappelling, rock climbing, and rafting. Hike to the summit of Volcán Barú for an unforgettable sunrise, or soar above the slopes on a zip line.

Exploring the misty trails of its cloud forest in search of hidden waterfalls and elusive quetzals, surrounded by lush greenery and the sounds of birdsong, is an absolute must.

After the heat of Panama City, Boquete offers a refreshing escape, with coffee plantations sprawling out in a vibrant patchwork of greens. Sample Panama Geisha, one of the priciest coffees in the world, and enjoy farm-to-table fusion dishes at the Italian-run Retrogusto.

4. Bocas del Toro

Bocas del Toro caters to everyone. It’s a lively backpacker party hub, a serene Caribbean retreat for couples, and a haven for expats, with its three main islands and numerous uninhabited islets featuring some of Panama's finest beaches.

Bocas Town on Isla Colón is the heart of the action. A mix of hostels and artisan shops fills the vibrant, colorful clapboard buildings.

Go starfish spotting at Playa Estrella, where the tranquil waters invite snorkeling. Afterwards, unwind with delicious cocktails and freshly caught fish at the stunning over-the-water El Último Refugio.

Planning tip: For beaches embraced by jungles, coral-ringed cays, and enchanting surf spots like Wizard Beach, hop over to Isla Bastimentos. This island is home to a marine park that serves as a vital conservation area, featuring mangroves, monkeys, crocodiles, and caimans, along with fantastic snorkeling and scuba diving options.

5. Comarca de Guna Yala (San Blas Islands)

Embrace your inner Robinson Crusoe on this collection of exquisite tropical islands off Panama’s Caribbean coast, complete with swaying palms, powdery white sands, and crystal-clear waters.

The San Blas archipelago features an island for every day of the year, with a few extras thrown in. This semi-autonomous area is inhabited by the Indigenous Guna people, who diligently uphold their traditions and culture, including the beautiful molas, hand-embroidered textiles crafted by Guna women.

The rustic island lodges, constructed from cane and palm thatch, are all managed by families from busier village-islands like Playón Chico.

Planning tip: The San Blas Islands provide a perfect opportunity to unplug completely—think no internet, no TVs, and no phones. Prepare to step away from technology and instead enjoy leisurely days filled with sunbathing, swimming, snorkeling, and stargazing.

6. Santa Catalina

Once a quiet fishing village, Santa Catalina in the Gulf of Chiriquí has transformed into a surfer's paradise, boasting some of the best year-round surf breaks in Central America—no wetsuit needed.

Relaxed fishermen peddle their daily catch under the shade of a mango tree—expect a sushi experience with a tropical twist. If surfing isn’t on your agenda, this is the gateway to Parque Nacional Coiba.

Planning tip: Time your visit to this former penal colony, known as 'Panama’s Galápagos,' just right and you can swim alongside the gentle giants of the ocean: whale sharks (December to April) and humpback whales (August to November), along with whitetip reef sharks, rays, hawksbill turtles, and vibrant schools of fish. Tours are required to access the park, so be sure to book one in town.

7. Portobelo

Wandering through the laid-back streets of Portobelo, it’s hard to imagine that this was once a key Caribbean port, where treasure looted from the Incas was sent back to Spain.

The remnants of frequently attacked fortresses still stand, with Fuerte San Jerónimo being the most visited. Among the quaint clapboard homes, the stone Customs House, which once overflowed with Peruvian gold, stands out.

Portobelo’s African heritage traces back to the Congo, and places like Casa de la Cultura Congo play a vital role in preserving traditional art and music.

Planning tip: Join the vibrant festivities that honor the local culture: the lively biannual Festival de Diablos y Congos and the October Festival del Cristo Negro, when the life-size wooden statue of the Black Christ, rich in myth and legend, is taken from Iglesia San Felipe and paraded through the streets.

8. Península de Azuero

Farming, folklore, and festivities are at the core of the Azuero Peninsula, the cultural heart of the country, nestled between the Gulf of Chiriquí to the west and the Gulf of Panamá to the east.

Las Tablas hosts the country’s most vibrant and largest Carnaval celebration, where you can expect dazzling costumes, lively music, and spirited dancing.

Further south, the charming streets of Pedasí are adorned with well-preserved colonial architecture. Playa Venao, known for its golden sands and world-class surfing, is located another 34km (21 miles) to the south.

For those keen on wildlife watching, the reserves of Isla Iguana and Isla Cañas – among the few places on earth where olive ridley sea turtles nest in significant numbers – are just a short boat ride away.