3 Days in Panama City, Panama – The Perfect Itinerary

If you have already read my post about Colombia’s Caribbean coast, you know that I flew from there straight to Panama City. It was my first time in the country, and I decided to spend three days in the capital before continuing my journey. Originally, I had planned to travel north to Bocas del Toro, but due to limited time I chose to stay in Panama City instead, and I definitely do not regret it. The city left a strong impression on me; it feels modern, safe and easy to navigate, and everything worked smoothly from the moment I arrived. What really stood out was the contrast between Casco Viejo, the colonial old town with its colourful streets and laid back charm, and the modern skyline with glass towers just across the bay. This mix of history and progress gives the city a unique atmosphere, and with its lively nightlife, great bars and plenty of shopping opportunities, Panama City quickly shows that it has much more to offer than just the famous canal. Maybe after reading this, you will feel inspired to experience Panama City for yourself, it is one of those places that surprise you in the best way possible.

Day 1 – Arrival in Panama City & First Impressions

Upon arrival in Panama City, the easiest way into town is by Uber. Expect to pay around $20–30, depending on where you’re staying. If you need mobile data, don’t worry – there’s a small shop just outside arrivals where you can pick up a SIM card. For about $20 you’ll get unlimited internet for three days, which is perfect to get started.

The city has some great neighborhoods worth checking out. I explored Obarrio, Avenida Balboa, Punta Paitilla, and El Cangrejo. My base was El Cangrejo, a lively area that’s especially popular with backpackers. I stayed at the Blue Hostel and really liked it. It was safe, comfortable, and a good spot to settle in.

Depending on your arrival time, you can already explore your neighborhood on foot, grab some food, and maybe even head out in the evening. El Cangrejo in particular is known for its vibrant nightlife, with plenty of bars like Central Bar, Rana Dorada, and Murphy’s Irish Pub, making it the perfect setup for a casual pub crawl on your first night.

Day 2 – Casco Viejo & Canal History

Your second day in Panama City should start with a trip to Casco Viejo, the city’s historic old town. Wandering through its narrow streets feels like stepping back in time, with colonial buildings, colorful facades, and lively plazas giving the neighborhood its unique charm. Don’t miss the Metropolitan Cathedral and Plaza de la Independencia, two of the area’s most iconic landmarks.

Casco Viejo is also packed with great cafés and restaurants, perfect for a long lunch break. Afterward, head over to the Panama Canal Museum to dive into the history of the canal that put Panama on the map. Getting around is easy: distances in Panama City are short, and Uber works everywhere. A ride from El Cangrejo to Casco Viejo costs less than $10 and takes about 20 minutes, traffic depending.

While exploring, you’ll find plenty of souvenir shops. One of the most popular buys is the Panama hat, and yes, you can get a good one for as little as $15. Affordable, lightweight, and stylish, it’s the perfect keepsake. In the evening, you can either take it slow and recover if last night’s pub crawl went on a bit too long, or dive back into the nightlife after dinner. Casco Viejo has no shortage of rooftop bars and cozy spots for another memorable night out.

Day 3 – Art, Seafood & Sunset

Your third and final day in Panama City is all about slowing down and enjoying the city at an easy pace. Start with a visit to the Museo de Arte Contemporáneo to get a glimpse of Panama’s creative side. The collection isn’t huge, but it’s a nice way to dive into the local art scene.

From there, make your way to the Mercado de Mariscos, the city’s famous fish market. It’s a paradise for seafood lovers, with stalls serving everything from fresh ceviche to grilled fish. Sometimes the waiters can be a bit pushy trying to get you into their restaurants. Just smile, keep walking, and pick the spot that feels right for you. The market is a must-do, and a little persistence from vendors shouldn’t take away from the experience.

If you’re looking to truly unwind, spend the afternoon at a nearby beach club, or simply enjoy the atmosphere along the Cinta Costera, the coastal promenade that’s perfect for a sunset walk. Watching the city’s skyline light up while the sun sets over the bay is the perfect way to wrap up your stay.

Some travelers feel the need to visit the Panama Canal on their last day, but honestly, I wouldn’t recommend it. The entrance fee is $15, and unless you’re fascinated by shipping logistics, watching a few vessels being loaded doesn’t feel like a memorable experience. In the evening, take it easy. Have a relaxed dinner, grab a final drink, and get ready for your departure or the next stop on your journey.

After three days in Panama City, I can definitely recommend visiting. I really liked the vibe and the city in general. Everything feels very Americanised, from the use of the US dollar as the main currency to the many American companies based here. At one point I even caught myself thinking about what it would be like to live and work here if the opportunity ever came up, and honestly I could see it. What the future holds, who knows, but Panama City is a place I would happily return to. For a first visit, three days feel just right depending on what you want to do, especially if you plan to continue your journey to places like Bocas del Toro afterward.