Despite their name, Panama hats have never been made in Panama. A Panama hat (toquilla straw hat) is a traditional brimmed straw hat of Ecuadorian origin. Traditionally, hats were made from the plaited leaves of the Carludovica palmata plant, known locally as the toquilla palm , although it is a palm-like plant rather than a true palm.

Panama hats are light-colored, lightweight, and breathable. Beginning around the turn of the 20th century, these hats became popular as tropical and seaside accessories owing to their ease of wear and breathability.

The art of weaving the traditional Ecuadorian toquilla hat was added to the UNESCO Intangible Cultural Heritage Lists on 6 December 2012. Panama hat is an Intangible Cultural Heritage, a term used to define practices, traditions, knowledge, and skills communities passed down from generation to generation as part of their cultural heritage.