Lesbian, gay, bisexual, and transgender (LGBT) people in Panama face legal challenges not experienced by non-LGBTQ residents.

A constitutional amendment prohibiting same-sex marriage was approved by the National Assembly of Panama on October 29, 2019, but was withdrawn before the second vote and referendum required to bring it into force.

In Guna society, if a young boy begins showing a tendency to act female, the family naturally accepts him and allows him to grow up in this way.

The document stated that "the country should guarantee freedom of religion and should modify the law to protect the traditional structure of the family, defined as the union of a man and a woman.

[11] On 24 March 2017, another lawsuit against Article 26 of the Panamanian Civil Code was introduced to the Supreme Court, who agreed to hear the case.

[15] On 14 April 2017, Vice President Isabel Saint Malo announced her support for equal marriage rights for same-sex couples.

[16] In mid-May, Attorney General Rigoberto González issued a statement to the Supreme Court, asking it to legalise same-sex marriage.

[17][18] In October 2017, one Supreme Court judge preliminarily published a draft ruling rejecting the same-sex marriage case.

[19] On 21 December 2017, LGBT advocacy group Fundación Iguales Panama presented a recusal request before the Supreme Court against Justice Cecilio Cedalise, who spoke against same-sex marriage in 2015.

[26] On 16 January, Vice President Isabel Saint Malo announced that the country would fully abide by the advisory opinion.

[29] In early February, a citizen submitted an application to the Parliament to investigate the Vice President for allegedly overstepping her functions and abusing authority when she announced government compliance with the IACHR opinion.

[31][32] After a seven-year delay, the Supreme Court of Justice ruled in March 2023 that there is no positive right to same-sex marriage under the Panamanian constitution or law.

In August 2015, a bill to ban discrimination on the basis of sexual orientation and gender identity was introduced in the National Assembly.

Since 2006, transgender persons in Panama can change their legal gender and name on their birth certificates, but only after having undergone sex reassignment surgery.

[44] In June 2016, a new foundation named Convive Panamá was launched strongly based on the mission, ideas and working methods of Unión de la diversidad.

Gay men from over 120 countries were asked about how they feel about society's view on homosexuality, how do they experience the way they are treated by other people and how satisfied are they with their lives.