The capital city of Panama is Panama City. Situated at the Pacific entrance of the Panama Canal, it serves as the country's hub for commerce, culture, and politics. Founded in 1519, Panama City is one of the oldest continuously inhabited European settlements on the Pacific coast of the Americas. The city features a mix of modern skyscrapers and historical sites, including the Casco Viejo district, a UNESCO World Heritage site. Panama City is also known for its vibrant nightlife, rich culinary scene, and proximity to natural attractions like the Panama Canal and biodiversity-rich rainforests.