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 county seat of Bay County and is located just east of the vacation destination Panama City Beach. Major employers in the Bay County area include Tyndall Air Force Base, 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 of Panama City Beach is a separate incorporated city on the west side of the Hathaway Bridge just to the west of its sister city, the larger and older Panama City, in Bay County, Florida, United States. Panama City Beach's slogan is "The World's Most Beautiful Beaches" due to the unique sugar-white sandy beaches of the NW Florida "panhandle" area.

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