The word Carnival derives from the "feast of the flesh" and it is one gigantic binge before the abstinence dictated by the Christian church during the 40 days before Lent. In Panama it means celebrating in the streets.

Panama´s carnival started during the end of the XIXth century when Panama was under the rule of Colombia.

Back then The Sovereign Musical Band of the Isthmus played in parks and squares only. Anyway, the band was the forerunner of the "Murgas". They played popular tunes of the day such as danzas, minuets, mazurkas, polkas and quadrilles in civilian outfit. The "Murgas", today are musicians who play the popular music in the streets with trombones, trumpets, clarinets and the bass drum.

Panama became independent in 1903 and by 1910, under a Carnival Board, the first queen, Manuelita Vallarino, was crowned. The queen was selected by the Panamanian aristocracy of the Union Club, which had just been founded in 1909, headquartered in the Casco Viejo. Popular dances of the times were known as "Tambor". These dances were the base for Panamanian folkloric typical genres. Groups played with acoustic guitars, violins, drums and other percussion instruments.

It wasn't until the year 1913 that the carnival was declared an official event. Laura Arjona was crowned queen at the National Theater. Cuban rhythms came to Panama in the 1920's, across the first radio signals and in new records. The "toldos" (popular dancing spots in different part of Panama City) were then created, They were sponsored by brewery companies. "Toldos" today are still sponsored by liquor brands and are basically temporary discotheques during the carnival with live bands.

It wasn't until after the mid '50s that the Carnival Board started selecting the queen from other levels of society, causing the Union Club to hold their own internal carnivals. Another event which was tied to the four Carnival days was the "Carnavalitos" in the city of Colon. On the weekend after Panama City's carnival people travelled by train or bus to enjoy Colon's parades, comparsas and "toldos".

The parade in Panama City was always held on Central Avenue but in 1985, the new Board of Directors decided to change the route to Via España, because the population had grown. In those years performances by internationally renowned bands began to take place on the different stages set along the route. This was copied from the Miami Calle 8 Carnival.

The famous "culecos" are a tradition from the interior provinces. To cool off from the heat of the day, carnival goers get sprayed with water through a hose. The idea was transferred to Panama where crowds are seen jumping under a hose shouting "¡Agua, agua! (Water!, water!)"

Each province carries out its own type of carnival and tries to offer the public a new attraction each year.In 2007, the parades and main events moved to a new route, the wide Transisthmanian highway, where an enormous crowd can fit and enjoy the modern day celebration of the Panama Carnival which started over a century ago. Each stage as well as the "toldos" present groups with typical music, salsa, style of the past ("Recuerdo") and reggaeton

The "sancochodromo", a site that sells popular Panamanian chicken soup, was created to cure those with hangovers from the previous day with a hot plate of soup. On Ash Wednesday, at approximately 5:00 a.m. a closing ceremony is held on the beach headed by the queen. It is known as "the burial of the sardine" which symbolizes the end of the feast.