Explore Casco Viejo: A Guide to Panama City

Panama City’s old town goes by many monikers: Casco Viejo, Casco Antiguo, and the lesser-used San Felipe, to name just three. It’s known as the hippest region in the city, where most visitors fall in love with Panama’s capital.

This UNESCO-listed district is a symphony of restored rainbow-hued buildings, romantic wrought-iron balconies, centuries-old churches, sky-caressing rooftops, and narrow cobblestone streets, strung out along four historic avenues.

Though humble in size, Casco Viejo hosts many of Panama City’s top restaurants and trendiest bars, along with historical buildings that have scintillating stories to tell. Here are ten of the best things to do in this enticing enclave.

Discover the Country’s Star Attraction – The Panama Canal

Building a cross-country canal to link the Pacific and Atlantic oceans was always an ambitious idea, not to mention a poorly-planned one. Work on this iconic waterway began in 1880, but by the time it was completed in 1914, around 25,000 people had died, mostly from tropical diseases.

Today, however, this engineering marvel is the country’s star attraction and one of the top sights in Panama City. Visitors can learn more about it at the Interoceanic Canal Museum (also known as the Panama Canal Museum), located in one of the neighborhood’s most handsome historic buildings, dating back to 1874.

Stroll the City’s Cobblestone Streets

Simply walking around Casco’s cobblestone streets is a rewarding activity. Dotted along four palm-lined avenues and four main plazas—Plaza de la Independencia, Plaza Herrera, Plaza Bolívar, and Plaza de Francia—are crumbling buildings that are thirsty for a fresh lick of paint, alongside historical structures reimagined as apartments and boutique hotels.

For a meal or refreshing drink, pop into Hotel la Compañia, originally built as a Jesuit convent in 1688, or the American Trade Hotel, which was once the tallest building in Panama City, despite topping out at just three stories.

Along with sharp contrasts between elegance and decay, strolling in Casco is delightful due to the mural-lacquered walls created by Rolando “Rolo” de Sedas, a Panamanian artist known for transforming urban spaces with colorful patriotic iconography.

Casco is also safe to walk around, and despite it being a tourist hub, you won’t find hawkers on every corner, so you’re free to enjoy the ruins, street art, and cool cafes in peace.

Taste the Champagne of Coffees

There’s coffee, and then there’s Geisha coffee, Panama’s most-prized brew—one of the world’s best and most expensive cups of coffee. Originally brought over from Ethiopia, Geisha coffee beans thrive in Panama’s humid climate, particularly in the high-altitude Chiriquí region.

However, you’ll need to save your dollars to enjoy it—batches of Geisha coffee have sold for as much as US$2,568 per pound. In Casco, you can sip this champagne of coffees at Café Unido or Tiempos, located within the American Trade Hotel at Plaza Herrera.

Get into the Rum Spirit at Pedro Mandinga

Pedro Mandinga is Panama’s first artisanal craft rum distillery and the first dedicated rum bar to open in Casco Viejo. Tropical print armchairs, rattan ceiling fans, and vintage salsa records create an inviting atmosphere to spend an enjoyable afternoon (happy hour runs daily from noon to 6 pm).

Before ordering your drink, ask to sample the silver and spiced house rums made from Raspadura pure cane sugar. The menu offers an excellent selection of cocktails, but the Mandinga mojitos are unmissable.

Pick Up a Panama Hat—You Know You Want to!

Worn by everyone from gold rush pioneers to U.S. presidents, not to mention spies worldwide, the Panama hat has become synonymous with this Central American nation. Although it is Ecuadorian in origin, these straw hats are sold everywhere in Panama City, with prices starting from US$15 at street stalls to US$800 in shops.

As a guide for purchasers, the tighter the weave, the pricier the hat. At Victor’s Hats, rows of shelves display a variety of styles and colors. If you’re unsure, stick to the classic style in natural tones.

Shop for Molas While You Admire the Views on Casco Viejo Seafront

Casco’s characterful streets are packed into a small peninsula that juts out into the Pacific, and the sea views from here are impressive, with giant ships waiting to pass through the canal against the modern downtown skyline.

The best outlook is from Paseo Esteban Huertas, a picturesque promenade built atop the old city’s outer wall. Under a canopy of bougainvillea, this scenic path runs from Plaza de Francia to the former Club Unión, which stood in for a Bolivian villa in the Quantum of Solace Bond movie. Along the waterfront, Kuna women sell the embroidered molas (handmade textile panels) for which the country is famous.

Grab a Cup of Ceviche at Mercado de Mariscos

Mercado de Mariscos is Panama City’s bustling fish market, located at the start of Cinta Costera, a palm-fringed waterfront boulevard. Stalls display huge spiny lobsters on ice, neatly stacked filleted fish, and freshly caught shrimp piled high.

It’s a lively spot for lunch where you can buy fresh seafood and have it cooked to order at the restaurant upstairs. Don’t miss the citrus-sharp ceviche, served heaped into Styrofoam cups. This popular dish is best paired with an ice-cold beer.

Spend an Evening at a Rooftop Bar Overlooking the Old Streets

Casco is the city’s nightlife hub, boasting an impressive number of rooftop bars where you can enjoy Panama’s year-round warm weather. Capital Bistró Panamá—the first rooftop you see upon entering the historic district—offers stunning views over the Bay of Panama and is nearly perched on the water.

Lazotea, which sits atop the stylish boutique Hotel Casa Panama, provides sparkling skyline views and an opportunity to dip in the pool between drinks. This was the first rooftop in the old town to have its own pool.

Night owls should make their way to the rooftop at Selina, which features a pool and a lively lineup of events and live music nights. As Casco’s first rooftop bar, Tantalo remains eternally popular, while Casa Casco is frequented by well-dressed Panameños seeking 360° views of the city and bay.

Go Treasure Hunting in the Iglesia de San José

Visit Iglesia de San José to spot real-life treasure in the form of the Altar de Oro (Golden Altar). Legend has it that when Welsh privateer Henry Morgan attacked Panamá Viejo—the original Panama City—in 1671, Jesuit priests painted the altar black to disguise it and claimed that another pirate had already stolen it.

The baroque altar was later moved from Panamá Viejo to Iglesia de San José in Casco Viejo, where it stands today. It’s the only relic salvaged from that devastating attack and serves as the highlight of this historic church.

Sample the Rich Flavors of Panamanian Cuisine

To savor local fare, don’t miss a visit to Fonda lo Que Hay, which offers soul-nourishing and visually appealing updates of traditional Panamanian cuisine. This restaurant is considered one of the best in Casco Viejo, helmed by top restauranteur José Olmedo Carles Rojas. Try the deliciously dressed patacones (twice-fried plantains) or other changing menu options—they’re always exquisite.

If you want to experience several of Panama’s national dishes under one roof, Diablicos is the perfect dining choice in Casco. Here, you can relish hearty sancocho, a chicken broth with corn, starchy vegetables, and cilantro, or ropa vieja, a shredded meat dish that translates to “old clothes.”

Some evenings, the restaurant hosts vibrant performances featuring singing, dancing, drumming, and diablico sucios (dirty devils)—notable characters in Panamanian folklore.

This article was first published Nov 10, 2016, and updated Jun 16, 2022.