Panama is a town in Le Flore County, Oklahoma, United States. It is part of the Fort Smith, Arkansas-Oklahoma Metropolitan Statistical Area. The population was 1,413 at the 2010 census.
Panama is located at 35°10′14″N 94°40′12″W / 35.17056°N 94.67°W / 35.17056; -94.67 (35.170591, -94.670099).
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.