10 Incredible Places You Can't Miss

Panama packs an astonishing amount of diversity into a country smaller than South Carolina. Within a few hours, you can go from a gleaming modern skyline to pristine Caribbean islands, from misty cloud forests to indigenous villages that feel untouched by time. After exploring this Central American gem extensively, we've put together our definitive list of the ten places that made the biggest impression on us.

10. El Valle de Antón

About two hours from Panama City, El Valle sits in the crater of an extinct volcano and offers a completely different landscape from anywhere else in Panama. The town is known for its Sunday market (though it operates daily on a smaller scale), where you can find everything from handicrafts to exotic plants to golden frogs, Panama's national symbol.

The surrounding area has easy hikes to waterfalls, hot springs, and a "square tree" that's exactly what it sounds like. El Valle makes an excellent day trip or weekend escape from the capital, with cooler temperatures and a relaxed mountain-town vibe. It's particularly popular with Panamanians, giving it an authenticity that some tourist-heavy spots lack.

9. Santa Catalina

Panama's best surfing spot is also one of its most remote mainland destinations. Santa Catalina is a tiny fishing village turned surf town on the Pacific coast, with consistent waves, a handful of surf shops, and not much else. That's exactly the appeal.

Beyond surfing, Santa Catalina is the jumping-off point for Coiba National Park, a UNESCO World Heritage Site with some of the best diving in Central America. The former prison island is now a marine reserve teeming with sharks, rays, whales (seasonal), and pristine coral. Day trips to Coiba for diving or snorkeling run $85-150 depending on activities. Getting to Santa Catalina requires commitment (5-6 hours by bus from Panama City), but that journey keeps the crowds away. Compare transport options on Skyscanner if you prefer flying to nearby David and arranging ground transport from there.

8. Emberá Villages

Visiting an Emberá community offers a glimpse into indigenous life that feels genuine rather than staged. The Emberá people live along rivers in the Darién region, maintaining traditional practices while welcoming visitors who want to learn about their culture.

Day trips from Panama City (typically $80-120 including transport, boat ride, lunch, and activities) take you by dugout canoe to villages where you'll see traditional dancing, learn about medicinal plants, have the option to get temporary jagua tattoos, and share a meal of fish wrapped in banana leaves. What struck us was the balance between preserving traditions and engaging with the modern world on their own terms. The Emberá control the tourism, set the prices, and decide what to share. It's not a theme park but a living community.

7. Portobelo

Speaking of the journey to Isla Grande, Portobelo deserves a stop in its own right. This sleepy Caribbean town was once one of the most important ports in the Spanish Empire, where treasure from Peru was loaded onto galleons bound for Spain. The crumbling fortifications, now a UNESCO World Heritage Site, speak to that rich (and violent) history.

Beyond the forts, Portobelo is known for the Black Christ festival every October 21st, when tens of thousands of pilgrims descend on the town. The rest of the year, it's a quiet fishing village with good seafood, a Afro-Colonial church housing the famous Black Christ statue, and easy access to nearby beaches and dive sites. Combined with Isla Grande, it makes a perfect two-day escape from Panama City.

6. Isla Grande

Just 90 minutes from Panama City, Isla Grande offers an easy Caribbean escape without the journey to Bocas or San Blas. This small island off the Portobelo coast has a distinct Afro-Caribbean culture, with reggae, coconut-based cuisine, and a relaxed pace that feels worlds away from the capital.

The island has no roads, just sandy paths connecting colorful houses, simple restaurants, and small beaches. We took a boat around to more secluded spots, snorkeled over nearby reefs, and spent an afternoon eating fresh fish and drinking coconut water on the beach. It's not as spectacular as San Blas, but it's far more accessible for a weekend trip. The journey itself is worthwhile, passing through historic Portobelo with its Spanish colonial fortifications and offering glimpses of traditional coastal life. Boats to the island leave from La Guaira ($3-5 each way), making this a budget-friendly day trip or overnight adventure.

5. Boquete

Nestled in the highlands of Chiriquí province at 1,200 meters elevation, Boquete offers a refreshing escape from the heat. The town sits in a valley surrounded by cloud forests, coffee plantations, and the imposing Volcán Barú, Panama's highest peak. The climate is perpetually spring-like, and the air smells of flowers and fresh coffee.

Coffee tours are the main draw here, with farms like Finca Lérida and Café Ruiz offering walks through plantations followed by tastings of some of Central America's best beans. Beyond coffee, Boquete is a base for serious hiking. The Quetzal Trail through the cloud forest offers chances to spot the resplendent quetzal (best from January to May), while summiting Volcán Barú (3,475m) rewards early risers with views of both the Pacific and Caribbean on clear days. We also loved the less-strenuous walks to hidden waterfalls and hot springs scattered around the valley. The town itself has a sizeable expat community, excellent restaurants, and cozy mountain lodges perfect for cooler evenings. Airbnb has fantastic cabin rentals with mountain views.

4. Casco Viejo

Panama City's historic quarter is a fascinating blend of crumbling colonial architecture, hip rooftop bars, world-class restaurants, and genuine neighborhood life. Unlike sanitized historic districts in some cities, Casco Viejo still feels alive and a bit rough around the edges, with locals going about their daily business alongside tourists snapping photos of ornate church facades.

We spent an entire day wandering the cobblestone streets, ducking into art galleries, admiring the mix of beautifully restored buildings and atmospheric ruins, and watching ships queue for the canal from Plaza de Francia. The food scene here rivals any capital city, from Panamanian ceviche to innovative fusion cuisine. At night, the rooftop bars come alive with views over the modern skyline across the bay. It's the perfect base for exploring Panama City, with boutique hotels in converted colonial mansions offering far more character than the high-rises in the banking district. Check Booking.com for historic properties in restored buildings.

3. Bocas del Toro

This Caribbean archipelago has a completely different vibe from the rest of Panama. Bocas feels like a slice of the West Indies got lost and ended up in Central America, with reggae drifting from waterfront bars, colorful wooden houses on stilts, and a laid-back atmosphere that makes it hard to leave.

The main island (Isla Colón) has the town of Bocas with restaurants, nightlife, and easy boat access to surrounding islands. But the magic lies beyond: Starfish Beach with its crystal-clear shallows full of orange starfish, Red Frog Beach for surfing and jungle walks, and Zapatilla Islands for pristine snorkeling.

One absolute highlight is the nighttime bioluminescence tours (25-35), where you swim through glowing microorganisms that light up magically with every movement in the water. This natural phenomenon is especially spectacular during new moon periods. We loved renting bikes to explore Isla Colón's quieter side and taking boat tours (22-32) to hit multiple beaches in a day.

The journey here is part of the adventure too, whether you fly from Panama City (45 minutes) or take the scenic overland route through the mountains followed by a water taxi from Almirante. For accommodation, Booking.com has everything from backpacker hostels to overwater bungalows, while Airbnb offers unique stays like jungle treehouses.

2. Panama Canal

There's something almost surreal about watching a massive container ship rise 26 meters in a lock chamber, water churning as millions of gallons flow by gravity alone. The Panama Canal isn't just an engineering marvel; it's a window into how global trade actually works. We spent hours at the Miraflores Locks visitor center, mesmerized by the precision of ships squeezing through with just inches to spare on either side.

The visitor center ( 17.22 entry) offers multiple viewing decks, a museum explaining the canal's construction and expansion, and a theater showing documentaries about this ambitious project that cost thousands of lives and changed world shipping forever. For a more immersive experience, you can actually transit part of the canal yourself on organized boat tours. Watching the locks operate from water level, feeling your boat rise alongside cargo ships, is unforgettable.

1. San Blas Islands (Guna Yala)

Nothing quite prepares you for San Blas. These 365 islands scattered across the Caribbean Sea are home to the Guna people, who maintain their traditional way of life and govern the territory autonomously. The water is impossibly turquoise, the sand blindingly white, and the palm-fringed islands look like they've been photoshopped into existence.

What makes San Blas special isn't just the scenery but the authenticity. There are no resorts here, no big hotels, no crowds. You stay in basic cabins run by Guna families, eat fresh-caught lobster and fish, and fall asleep to the sound of waves. Day trips involve island-hopping by wooden boat, snorkeling over coral reefs, and visiting communities where women still wear traditional molas (intricately embroidered textiles). The lack of infrastructure is part of the charm, though it means you'll need to book through tour operators or arrange transport from Panama City. Most visitors opt for all-inclusive packages (135-270 /day) that handle the logistics.

Planning Your Panama Highlights Trip

Two weeks is ideal for hitting most of these spots, though you'll need to make choices. A sample itinerary might include two to three days in Panama City (Casco Viejo, Canal, Emberá day trip), three days in San Blas, three days in Bocas del Toro, two days in Boquete, and a day trip to El Valle or Portobelo/Isla Grande. Domestic flights on Skyscanner save time between distant regions, while overland travel offers more adventure and lower costs.

Whatever you choose, Panama rewards those who venture beyond the canal. This small country punches far above its weight in diversity, beauty, and genuine cultural experiences.