10 Best Towns + Cities in Panama [Insider’s Guide]

Panama has always played second fiddle to its neighbors Colombia and Costa Rica, but don’t count out this tiny but mighty country as an incredible travel destination. From black sand beaches to lush jungles and remote islands, Panama is a true gem just waiting to be explored.

Laid-back surf towns to bustling, cosmopolitan cities in Panama await, offering something special no matter the type of trip you’re dreaming of. Read on for our ultimate list of the best places to visit in Panama, handpicked by travel experts and locals who know this still untouched gem like the back of their hand.

Best Places To Visit in Panama

Your Panama itinerary will almost certainly start in Panama City, but there’s much more to this diverse destination than just the cosmopolitan city that is considered the financial capital of Central America. Once you’ve explored the city’s historic center and visited the iconic Panama Canal, these are some of the places to visit in Panama that you don’t want to miss.

Read on for more beach towns, jungle hideaways, and cities in Panama that our travel experts couldn’t recommend more.

Bocas Town

The capital of the gorgeous Bocas del Toro archipelago, Bocas Town is one of the most memorable and laid-back cities in Panama. Known for its parties, backpackers, and water sports, Bocas del Toro is among the country’s most popular Caribbean coastal destinations and one of the best places to visit in Panama.

The area is home to some of Panama’s coolest hotels, including a growing number of coastal properties that even offer overwater bungalows. No need to fly all the way to the Maldives – Bocas del Toro is known for being home to some of the most affordable overwater bungalows anywhere.

While many travelers to Bocas del Toro head straight to one of the archipelago’s nicer hotels, staying directly in Bocas Town makes for a more budget-friendly way to explore these islands. Boat tours leave frequently from town docks to whisk backpackers off for great beach days, incredible scenery, and amazing excursions and activities.

El Valle

Situated inside the crater of an extinct volcano, El Valle de Anton is a small town located in the Cocle Province of Panama. Surrounded by lush forests and waterfalls, this is one of the best cities in Panama for nature lovers.

For those who enjoy hiking, there are great trails to lead you to the top of the volcano crater, including Cara Iguana and La India Dormida, among some of the best places to visit in Panama. And when you finish hiking, relax in the therapeutic waters of El Valle’s hot springs or your boutique hotel pool – this is one of the highlights of a visit!

While El Valle can be a day trip from Panama City, you should spend at least 1 night here on your Panama itinerary if you’re really looking to experience all that this small town and its gorgeous surroundings have to offer. Its unique location, natural beauty, small-town feel, and outdoor activities make it a truly unforgettable experience.

Panama City

You can’t visit Panama without exploring Panama City – and you wouldn’t want to! Once almost exclusively seen as a destination for business travelers, the city now feels revitalized and reborn, many of its historic monuments restored and neighborhoods renewed.

There’s much more to it than just the Panama Canal. Visitors can walk along the cobblestone streets of the Casco Viejo neighborhood, or take in the vibrant street art scene that is rapidly emerging throughout the city. The city is also home to a wide range of world-class restaurants, cafes, and bars, as well as an array of shopping centers, markets, and boutiques.

Plus, Panama City is a great place from which to explore the rest of the country, whether you’re keen to explore via rental car, bus, or plane. Just don’t leave without exploring the city first!

Playa Venao

Once just a tiny beach town, Playa Venao has quickly grown into one of Panama’s top destinations for beaches and surfing. Sandy shores, incredible waves, and a laid-back atmosphere complete with language schools, yoga classes, and more have made it a popular new favorite with travelers.

You’ll love all the bars, cafes, and restaurants popping up in Playa Venao, which make it a great destination if you’re looking to settle down for a few days or even a few weeks. It’s the ultimate surf town and beach town, and while there are plenty of cool day trips from Venao, most travelers enjoy it because it’s the perfect place to do absolutely nothing.

Venao is famously the home of Selina, the world-famous brand of coliving and coworking spaces that have conquered the globe in just a few short years. Selina’s top-notch private and dorm accommodations are complete with coworking spaces, cafes, events, and plenty of opportunities to connect with fellow travelers.

Santa Fé

Santa Fé is little more than a tiny village located in the highlands of Panama, but wow, will it impress you! Nestled beside Santa Fé National Park, this tiny town is perfect for travelers who like to stray off the beaten path and experience the authentic local culture of the country while also taking in some of its most scenic spots.

Visitors can explore the park, consisting of primary rainforest, on their own or on a guided off-trail trek with a local guide. Several spectacular waterfalls in the area that you won’t want to miss include Cascada de Bermejo, El Salto, and Alto de Piedra. Other fun activities are swimming with the locals in the Bermejo River and going on a coffee tour, but make sure to complete the experience with a stay at the Coffee Mountain Inn!

Boquete

Boquete is but a mere blip on the map, but its privileged position within the breathtaking province of coffee-producing Chiriqui Valley and its proximity to Barú Volcano National Park make it one of the most popular places to visit in Panama.

Like neighboring Costa Rica, Boquete is surrounded by lush green forests, mountains, and rivers, making it an ideal destination for hiking, birdwatching, and rafting. If you’re a coffee lover, a visit wouldn’t be complete without visiting some of the nearby coffee plantations, perhaps after a morning hike to nearby waterfalls like Las Tres Cascadas and San Ramon Waterfall.

Despite its small size, Boquete is also one of the cities in Panama with the most diverse community of digital nomads, long-term travelers, and expats who have contributed to its tiny yet vibrant culture and culinary scene.

Penonomé

The capital of the Cocle province that is home to El Valle de Antón, Penonomé is tiny and feels remote, but it’s a great choice for a laidback getaway. If the busier and more touristy destinations in Panama don’t appeal to you, this is a destination to consider. Its proximity to Santa Fe National Park is appealing, and its lush jungle surroundings make it attractive for hikers and nature lovers alike.

There’s a small expat community here that has been drawn by the relative proximity to Panama City, affordable living, and convenience of its location in the very center of the country. Just over half an hour from the Pacific Coast, it almost makes for a convenient base from which to visit some of the best beaches in Panama.

David

As the third-largest city in Panama, David is known to have a thriving business district and numerous shopping centers – but it isn’t a destination many travelers tend to prioritize. It’s true that many backpackers pass through David on their way to Boquete, but for those looking for a convenient base from which to explore this gorgeous region of the country, we’d recommend sticking around for a bit longer.

Outdoor enthusiasts will have plenty to do in David, with its proximity to the stunning Parque Nacional Volcan Barú and various hiking trails. Hike at sunrise for breathtaking views of the surrounding landscape. David is also steeped in rich history and culture, reflected in its charming colonial architecture, colorful local markets, and busy street life. Add a day or two here to your Panama itinerary – you’ll be glad you did.

Colón

If you can’t come to Panama without crossing the Panama Canal off your bucket list, plan a visit to Colón. One of the largest and most important cities in Panama, Colón is located on the Caribbean Sea and marks the entrance to the canal.

Visit the Agua Clara Locks Visitor Centre for one of the best viewpoints of the canal. Spend an hour learning more about its history as you see the oversized cruise ships and shipping barges moving through. If you’re lucky, you might even spot a crocodile. Colón is about an hour’s drive from Panama City and is a popular day trip destination, though you’ll find plenty to do should you stay the night, including visiting the ruins of the historic Fort San Lorenzo.

Santa Catalina

Santa Catalina is just a tiny town on Panama’s Pacific Coast, but it’s an increasingly popular travel destination that seems poised to be one of the best places to visit in Panama if you’re looking for a beach escape.

Most travelers drawn to this tiny village are here for the surf. It’s regarded among the best in Panama,. though is manageable enough for even a beginner to enjoy. The black sand Playa Catalina is a favorite for larger surfing waves, but beginners will find waves more their size at Playa Estero.

Another great reason to visit Santa Catalina? It’s proximity to Coiba National Park. Santa Catalina is where many of the organized excursions to this pristine marine national park embark, making it a perfect destination for nature lovers and divers as well.