Panama had voted in favor of the United Nations Partition Plan for Palestine, and was one of the first countries to recognize Israel after it declared Independence on 14 May 1948.

Israel and Panama signed a cooperation agreement in the fields of culture and tourism in 1963.

[2] Until 1974 there were good relations between the countries, but after that year Panama has decided to support anti-Israeli resolutions.

During those years the relations between Israel and Panama were non-official, but they were still important to Israeli security.

On 19 July 1994, Alas Chiricanas Flight 901 exploded in Panama, 12 of the dead passengers were Jews.