Panama City is a city located along U.S. Highway 98 in Bay County, Florida. It is the largest city between Pensacola, Florida and Tallahassee, Florida. It is the larger (population wise) of two principal cities of the Panama City-Lynn Haven, Florida Metropolitan Statistical Area. As of the 2000 census, the city population was 36,417; by 2005, the city's population had grown to 37,188, according to Census Bureau estimates. It is the county seat of Bay County and is located just east of the vacation destination Panama City Beach. The U.S. Geological Survey National Mapping Information locates Panama City at 30° 10' 28" N 085° 39' 52" W.

Major employers in the Bay County area include Tyndall Air Force Base (located east of the city), the Coastal Systems Station-Naval Surface Warfare Center, Gulf Power, Arizona Chemical, Stone Container, Sallie Mae, and Berg Pipe. Gulf Coast Community College and a satellite campus of Florida State University offer educational opportunities.

The city is served by Panama City-Bay County International Airport (PFN).

In 2006, Panama City was named the best place to invest in real estate in the US by CNN's Business 2.0 magazine.