Foundation of Old Panama City

Foundation of Old Panama City, observed on August 15, commemorates the founding of Panamá Viejo in 1519 by Spanish conquistador Pedro Arias Dávila. As the first European settlement on the Pacific coast of the Americas, it became an important center for exploration, trade, and communication between the Atlantic and Pacific worlds.

The observance invites people to reflect on Panama’s rich and complex history and the lasting significance of its earliest city. The stone ruins of Old Panama City stand as a powerful reminder of the people, cultures, and historic events that shaped the nation, offering visitors a meaningful connection to Panama’s past.

The Foundation of Old Panama City is observed on **August 15**, commemorating the establishment of Panama City on **August 15, 1519**. Founded by Spanish governor Pedrarias Dávila, the settlement was formally known as *Nuestra Señora de la Asunción de Panamá*. It was built near the Pacific entrance of the Isthmus of Panama and became the first permanent European settlement on the Pacific coast of the Americas. Its position made it an important link between Spain’s Atlantic and Pacific territories.

During the sixteenth and seventeenth centuries, Panama City developed into a major center of imperial trade. Wealth from South American territories, especially Peru, was transported across the isthmus and shipped onward to Spain. Roads and routes connecting the Caribbean port of Nombre de Dios—and later Portobelo—with the Pacific city helped make Panama a crucial commercial crossroads. The city’s prosperity also reflected the labor of Indigenous people and Africans, including enslaved Africans, whose contributions were essential to the colonial economy.

Old Panama City’s history changed dramatically in 1671, when the English privateer Henry Morgan attacked the settlement. Fighting and fires severely damaged the city, and the Spanish authorities subsequently relocated Panama City several kilometers west to a more defensible site. The abandoned original settlement became known as Panamá Viejo, or Old Panama. Its remaining cathedral tower, streets, convents, bridges, and foundations preserve evidence of the city’s colonial importance and its connection to the wider Spanish American world.

Over time, the August 15 observance evolved from a commemoration of the city’s founding into a broader expression of Panamanian historical and cultural identity. It recognizes Panama City’s role in global exchange, while also inviting reflection on the colonial systems and unequal social structures that shaped its development. Today, Panamá Viejo serves as an archaeological and heritage site, and its ruins—together with Panama’s historic district—are recognized for their outstanding historical value. Observed on **August 15**, the occasion links modern Panama City with the settlement founded more than five centuries ago.