- Panama City is the capital and largest city of Panama. It is located on the Pacific coast of the country and is known for its modern skyline and bustling business district. Panama City is a cosmopolitan city with a mix of modern and colonial architecture. Some of the notable landmarks in the city include the Panama Canal, Casco Viejo (the old town), and the Biomuseo. The city is also known for its vibrant nightlife, shopping, and dining scenes.