The capital of Panama is Panama City. Situated at the Pacific entrance of the Panama Canal, it serves as the largest city in the country and a significant economic and cultural hub. Panama City is known for its modern skyline, historic sites, and vibrant nightlife. The city features a mix of contemporary skyscrapers and colonial architecture, reflecting its rich history and economic growth. The Panama Canal, a major engineering marvel, is nearby and plays a crucial role in international maritime trade. Panama City is also recognized for its diverse population and cultural festivals, contributing to a lively urban atmosphere.