The first films shown in Panama City, in the late 19th and early 20th centuries, were projected from tents that were propped up in public spaces, some private homes, clubs, and schools.

Aurora Theater, Panama's first cinema, opened its doors in 1905 on Sixth and Fourth Streets in the San Felipe neighborhood. These first movie theaters were run by foreigners, since at that time no Panamanian was trained to work as a projectionist.

In the decade of the sixties, showings began in the former Bella Vista Theater and in the Lux. The Alhambra Cinema chain of movie theaters initiated operations in the late seventies and didn't close their doors until March 4, 2012.

During the start of the new millennium, chains like Cinemark and Cinépolis arrived in Panama, setting up new cinemas with wall-to-wall screens, extreme digital sound theaters, VIP lounges, and the latest in 3D movie theaters. The best of the seventh art can now be found showing in the major malls in Panama City.