Panama is a village in Montgomery and Bond counties, Illinois, United States.

[4] Panama is located on the border between Bond and Montgomery counties at 39°1′50″N 89°31′25″W / 39.03056°N 89.52361°W / 39.03056; -89.52361 (39.030451, -89.523548).

[5] It is 11 miles (18 km) south of Hillsboro, the Montgomery County seat, and 16 miles (26 km) northwest of Greenville, the Bond County seat.

Local law enforcement is dispatched through the Montgomery County Sheriff's Office in Hillsboro.

35.14% of all households were made up of individuals, and 15.32% had someone living alone who was 65 years of age or older.