1. A country in Central America, located on the isthmus connecting North and South America.
Usage: Proper noun; typically capitalized
2. A lightweight straw hat with a wide brim, traditionally made from straw and worn in warm climates.
Usage: Also called a panama hat; often lowercase when referring to the hat style

Examples

• Panama is famous for the Panama Canal, one of the world's most important shipping routes.
• She wore a panama hat to protect herself from the sun at the beach.
• The Panama Canal connects the Atlantic and Pacific Oceans.
• He bought a panama while vacationing in the Caribbean.
• Panama City is the capital and largest city of Panama.