1. A country of southeast Central America. The region was inhabited by a variety of Indian peoples when Columbus landed on its Caribbean coast in 1502. In 1513 Balboa crossed the Isthmus of Panama to reach the Pacific Ocean. Controlled by Spain until 1821, the area then became part of Colombia. Eager for a canal across the isthmus, the United States supported a revolution leading to Panamanian independence in 1903. Panama is the capital.

2. also Panama City The capital and largest city of Panama, in the central part of the country on the Gulf of Panama. The original city was founded in 1519, destroyed in 1671, and rebuilt a short distance away in 1673.