Panama is one of those countries where a backpacking trip can become much bigger than you originally planned. It is relatively compact, but the landscapes change constantly. You can go from a modern capital city to a Caribbean island, a Pacific surf village, a cool mountain town or a cloud forest without spending weeks traveling between them.
For backpackers, that makes Panama incredibly rewarding. You can build a trip around beaches and parties, wildlife and adventure, surfing and diving, hiking and coffee, or a little bit of everything. And honestly, the best Panama trip is probably the one that combines all of it.
Here are the places that deserve a spot on your Panama backpacking itinerary.
Panama City
Don't make the mistake of treating Panama City as nothing more than the place where your flight lands.
The capital is a fascinating introduction to Panama, with modern skyscrapers sitting only minutes from the historic streets of Casco Viejo. You can visit the Panama Canal, wander through the old city, walk the Cinta Costera, explore markets and enjoy an enormous selection of restaurants and nightlife.
It is also a great place to meet other backpackers before heading into the rest of the country.
Give yourself at least two or three nights. Panama City is much more than an airport stop.
San Blas Islands
If you want the classic tropical island experience, San Blas is hard to beat.
Tiny islands, turquoise water, palm trees and relatively simple accommodation make this one of the most visually spectacular parts of Panama. It is also culturally different from many other destinations because the islands are governed by the Guna people.
San Blas isn't really about nightlife or backpacker parties. It is about disconnecting, swimming, snorkeling, meeting fellow travelers and feeling like you've temporarily washed up on a deserted tropical island.
For many backpackers, it becomes one of those places where a planned two-night stay suddenly turns into a trip highlight.
El Valle de Antón
After the islands, head into the mountains.
El Valle de Antón sits inside the crater of an ancient volcano and provides a completely different experience from Panama City and San Blas. There are hiking trails, waterfalls, gardens, mountains and a noticeably cooler climate.
It is also relatively easy to reach from Panama City, making it a natural early stop on a backpacking itinerary.
It's the kind of place where you can spend a couple of days hiking during the day and wandering around the small town in the evening.
Santa Catalina
Santa Catalina is one of the places you should make an effort to reach.
This little Pacific village has become famous for surfing and for being the gateway to Coiba National Park. It has a completely different personality from Bocas del Toro. Bocas is Caribbean and lively; Santa Catalina feels like a remote Pacific surf town where life revolves around the ocean.
You can surf, snorkel, dive, fish, explore the coastline or take a boat toward Coiba.
And Coiba is the real monster attraction. Its waters are famous for marine life including sharks, turtles, rays, dolphins and huge schools of fish.
Give Santa Catalina around three or four days rather than trying to rush through it.
Lost and Found Hostel
Then comes one of the strangest and most memorable stops on the backpacking route: Lost and Found Hostel.
Instead of another beach town, you head high into the mountains and into the cloud forest.
Lost and Found sits directly along the route between the David or Boquete area and Bocas del Toro, making it an unusually convenient place to break up the journey. But the location feels anything but convenient once you arrive. You leave the main highway and walk into the forest, surrounded by hiking trails, waterfalls, wildlife, mountain views and jungle.
It is also exactly the kind of place that backpackers tend to remember.
You arrive expecting to stay for a night or two and end up meeting people, exploring the forest, swimming at waterfalls, looking for wildlife and hanging around the hostel long after you were supposed to leave.
The hostel's location makes it particularly useful for backpackers traveling between Bocas, Boquete and the Pacific.
Boquete
Boquete is where Panama's tropical heat gives way to cool mountain air.
The town is surrounded by mountains, coffee farms, waterfalls and cloud forest, making it a fantastic destination for backpackers who enjoy getting outside.
Take a coffee tour, hike through the mountains, chase waterfalls or simply enjoy the restaurants and cooler evenings.
Boquete is also a good place to slow down after several days of moving around. You might arrive intending to stay two nights and discover that you've been there five.
Bocas del Toro
Bocas is where you can finish the trip with almost anything you want.
Want to party? Bocas has it.
Want to surf? Absolutely.
Want beautiful beaches? Plenty.
Want snorkeling, diving, wildlife, boat trips or lazy days in a hammock? You've got those too.
Bocas has one of the strongest backpacker scenes in Panama, and that gives it a social energy that makes it particularly attractive to younger travelers. You can island hop by water taxi, explore different beaches during the day and find somewhere lively in the evening.
And you don't have to party at all.
Some islands and areas are much quieter, meaning Bocas really does have something for almost everyone.
That is one of the reasons it works so well as the final major stop on a Panama backpacking adventure.
Pedasí and Playa Venao
If you have extra time, head into the Azuero Peninsula.
Pedasí gives you a relaxed small-town base for exploring the surrounding coast, while Playa Venao has developed into one of Panama's best-known surf and backpacker destinations.
From this part of Panama you can also explore Isla Iguana, famous for its clear water and marine life.
This is a particularly good addition for travelers who want another Pacific experience without simply repeating Santa Catalina.
Santa Fe
For backpackers who want to get further away from the established tourist trail, Santa Fe is worth considering.
It is a small mountain town surrounded by forests, rivers, waterfalls and agricultural land. It doesn't have the same international backpacker infrastructure as Bocas or Boquete, and that is precisely the attraction.
This is a place to slow down, hike, swim in waterfalls, watch birds and experience a much quieter side of Panama.
Coiba National Park
Technically, Coiba isn't somewhere you simply wander into for a few hours. It takes planning and a boat trip.
But if you love the ocean, don't leave it off the list.
Coiba is one of Panama's great natural treasures and one of the country's premier marine destinations. Santa Catalina is the obvious jumping-off point, and a day on the water can become one of the biggest highlights of the entire trip.
For divers and snorkelers especially, this is one of those experiences worth organizing your itinerary around.
The Ultimate Backpacker Route
If you have around three weeks, you can put together an incredible trip without trying to see absolutely everything.
A great route would be:
Panama City to San Blas to El Valle to Santa Catalina to Boquete and to Lost and Found Hostel then to Bocas del Toro
If you have another week, add Pedasí and Playa Venao, or go deeper into places such as Santa Fe.
And that's the beauty of backpacking in Panama.
You can start with skyscrapers and the Panama Canal, sleep on a tropical island, hike through a volcanic crater, surf on the Pacific, disappear into a cloud forest, drink coffee in the mountains and finish by partying or relaxing in the Caribbean.
Very few countries this compact can give you that much variety.
Panama isn't really a country where you pick one perfect destination. The fun is putting together a string of completely different experiences and seeing what happens along the way.