[9] The name Panglao may have come from its former name Panglawod, meaning "to the open sea",[10] or derived from the word panggaw, referring to a fishing implement used by locals.

[11] Panglao flourished during the rule of the polity of Bo-ol, but raids by Moluccans and conquest by Ternate resulted in periods of depopulation when its population fled mostly to Panay and Mindanao, including Dapitan.

[11] Well before the Spanish colonization, the area was already long visited by Chinese and other Asian traders, as evinced by archaeological finds of Tang, Song, and Ming dynasty porcelain and trade wares.

[28] Therefore, the municipal, provincial and national governments are ploughing ahead with a plan to build a new international airport on Panglao island, with the final approach path directly over Alona beach.

Panglao is renowned for snorkeling and dive sites such as Doljo Beach, Garden Eels, Arco Point, Kalipayan, Napaling, and Puntod.

[29] Tours can readily be arranged to further dive sites, including Balicasag and Pamilacan, Bohol islands.