Panama's history is marked by a convergence of cultures and strategic importance. Indigenous peoples, like the Cueva and Coiba, thrived before the Spanish arrived in the 16th century. Vasco Núñez de Balboa's 1513 sighting of the Pacific from Panama underscored its significance as a trade and exploration hub. Panama became a vital link in the Camino Real trade route. Spanish colonization influenced the region's culture, and Panama later joined Colombia in the 19th century. 

The completion of the Panama Canal by the United States in 1914 transformed the nation. In 1999, control of the canal was peacefully transferred to Panama, marking a pivotal moment in its history. Today, Panama is a dynamic crossroads of commerce, culture, and biodiversity.