Panama is a town in Le Flore County, Oklahoma, United States.

[4] At the time of its founding, Panama was located in Skullyville County, part of the Moshulatubbee District of the Choctaw Nation.

But since the town was already called Panama by 1898, the inspiration would have to have been based on the unsuccessful French effort at building the canal which started 1881 and ended in 1889,[6] and not the successful American effort which did not start until 1904 and was not completed until 1914.

The Panama post office first opened January 14, 1898, but the order was rescinded for some unknown reason on February 23, 1898.

[8] Panama is located 9 miles (14 km) north of Poteau on State Highway 59.

[8] According to the United States Census Bureau, the town has a total area of 1.5 square miles (3.9 km2), of which 0.66% is water.

26.4% of all households were made up of individuals, and 12.5% had a person 65 years of age or older living alone.