Christmas looks a little different along St. Andrews Bay. Instead of snow-covered streets, you’ll find palm trees wrapped in twinkling lights, boats dressed for the holidays, and historic neighborhoods filled with festive markets, local shopping and Christmas traditions. From waterfront celebrations to visits with Santa, the holiday season in Panama City, Florida, brings plenty of reasons to gather with family and friends.
Spend an evening strolling beneath the lights in Historic St. Andrews, find the perfect gift in Downtown Panama City’s locally owned boutiques, or watch a parade of illuminated boats make their way across the bay. Here’s how to fill your holiday calendar with Christmas events, seasonal activities and festive experiences in Panama City.
Christmas in Panama City, Florida
Panama City Christmas Parades
Experience the Boat Parade of Lights on St. Andrews Bay
In Panama City, one of the biggest Christmas parades takes place on the water. The 40th Annual Boat Parade of Lights returns Saturday, December 12, 2026, bringing a fleet of decorated boats, sparkling lights and festive displays to St. Andrews Bay.
The celebration begins at the Panama City Marina with a Holiday Village from 4 to 7 p.m., featuring local vendors, holiday music and a visit from Santa. A special drone show takes to the sky at 5 p.m., followed by the illuminated boat parade beginning at 5:30 p.m.
Find a viewing spot along the waterfront in Downtown Panama City or Historic St. Andrews, or make dinner reservations at a bayfront restaurant and enjoy the festivities over a meal. As the boats pass by, you’ll see everything from fishing boats to sailboats decorated with creative Christmas displays.
The Boat Parade of Lights is free for spectators and makes a great centerpiece for a holiday weekend in Panama City.
Watch the Panama City Christmas Parade
The annual Panama City Christmas Parade on Saturday, December 5, 2026, is a longtime community tradition that brings families to Downtown for an evening of holiday entertainment.
Decorated floats, marching bands, community organizations and festive performers travel along Harrison Avenue as spectators gather to watch. And, of course, Santa is always a favorite part of the celebration.
Arrive early to explore Downtown, grab a bite to eat and find a comfortable viewing spot along the parade route. Check the events calendar for this year’s parade date, route and details.
Celebrate Christmas in Historic Downtown Panama City
Holiday lights, decorated storefronts and community celebrations bring plenty of Christmas cheer to Historic Downtown Panama City. Harrison Avenue becomes a favorite gathering place for families, with seasonal activities, local shops and restaurants all within walking distance.
Gather for the Downtown Christmas Tree Lighting
The annual Downtown Christmas Celebration at the Panama City Center for the Arts on Friday, December 4, 2026, brings the community together for one of the season’s favorite traditions. The towering Christmas tree and its synchronized light show create a festive backdrop for family photos, while seasonal programming adds to the celebration.
After the festivities, take a walk along Harrison Avenue to admire the decorations, stop into a local shop or enjoy dinner at one of Downtown’s restaurants.
Enjoy a Holiday Carriage Ride
Horse-drawn carriage rides return to Downtown Panama City on Saturday, November 28, 2026, and continue on weekends throughout December. Climb aboard for a festive ride along Harrison Avenue, where twinkling Christmas lights, decorated storefronts and historic architecture set the scene for a memorable holiday outing. It’s a fun way for families, couples and friends to experience the season in the heart of Downtown.
Shop Small for Christmas Gifts
Downtown’s independent boutiques, galleries and specialty stores make holiday shopping an experience of its own. Browse local artwork at Gallery of Art 850, discover unique finds at Jute & Palm and Accents Home Decor & Gifts, or create something one-of-a-kind with a custom hat from Hoyden Hat Co. Throughout the season, holiday markets and pop-up shopping events offer even more opportunities to support local makers and small businesses. The Holiday Bazaar at the Panama City Center for the Arts brings together local artists and vendors offering handmade gifts, artwork and seasonal finds.
Plan a full afternoon of shopping, grab a coffee or sweet treat between stops, and stay for dinner as the Christmas lights come on.
Discover Christmas Lights in Historic St. Andrews
In Historic St. Andrews, Christmas traditions come with waterfront views and a neighborhood full of locally owned businesses. Along Beck Avenue, decorated storefronts, boutiques, restaurants and galleries give visitors plenty to explore throughout the season.
Experience Light Up the Park at Oaks by the Bay
Oaks by the Bay Park becomes a festive destination when the neighborhood’s heritage oak trees and walking paths are decorated for Christmas. The annual tree lighting has traditionally welcomed families for holiday music, hot cocoa and an evening of celebration beneath the lights.
Stroll through the park, take photos near the Old Sentry Oak and enjoy the views of St. Andrews Bay. It’s a beautiful setting for a family holiday outing or a relaxing evening walk.
Spend an Evening on Beck Avenue
After enjoying the lights, continue along Beck Avenue to explore the neighborhood’s local shops and restaurants. Browse Little Village for unique gifts, find something stylish at The Trendy Side, or visit the Publishing Museum for handmade gifts.
Find Unique Gifts at Panama City’s Holiday Markets
Holiday shopping is even more fun when you can meet the makers behind the gifts. Panama City’s farmers markets and seasonal pop-ups bring together local artists, small businesses and vendors offering handmade goods, artwork, jewelry, seasonal treats and other finds.
The Downtown Farmers Market and the Market at St. Andrews are great places to start. Both provide opportunities to support local vendors while exploring the surrounding neighborhoods.
Throughout the holiday season, watch the event calendar for additional shopping events, boutique open houses, artisan markets and special promotions hosted by local businesses. Pair a market visit with brunch, browse the nearby shops and enjoy a full day of Christmas shopping around the bay.
Make a Holiday Weekend of It in Panama City
With so many Christmas activities throughout the city, there’s plenty to enjoy beyond a single evening. Spend your morning shopping at a local market, enjoy lunch overlooking St. Andrews Bay and explore the colorful murals and galleries around Downtown. As evening approaches, head to a holiday celebration or find a waterfront restaurant for dinner.
Staying overnight gives you more time to enjoy the season at your own pace. Browse places to stay in Panama City and plan a holiday getaway filled with local discoveries, Christmas traditions and time together along the bay.
Frequently Asked Questions About Christmas in Panama City, Florida
What are the best Christmas events in Panama City, Florida?
Popular holiday traditions include the Boat Parade of Lights on St. Andrews Bay, the Panama City Christmas Parade, Downtown Christmas Tree Lighting, Oaks by the Bay Tree Lighting, seasonal markets, and holiday celebrations in Historic St. Andrews. Visit the Panama City events calendar for upcoming events and schedules.
When is the Panama City Boat Parade of Lights in 2026?
The 40th Annual Boat Parade of Lights takes place Saturday, December 12, 2026. The Holiday Village opens at 4 p.m., followed by a drone show at 5 p.m. and the boat parade beginning at 5:30 p.m. The event is free for spectators.
Where can I see Christmas lights in Panama City, Florida?
Historic Downtown Panama City and Historic St. Andrews are popular areas for enjoying holiday decorations. Visitors can admire the Christmas tree and light displays at the Panama City Center for the Arts and look for seasonal lighting at Oaks by the Bay Park. Check the current holiday calendar for lighting schedules.
Are there free Christmas activities in Panama City?
Yes. The Boat Parade of Lights is free to watch, and visitors can also enjoy decorated neighborhoods, holiday window displays and public waterfront spaces. Many community celebrations and seasonal markets offer free admission, although individual activities and purchases may have costs.
Where can I take my kids to see Santa in Panama City?
Santa makes appearances at various community celebrations throughout the holiday season. The 2026 Boat Parade of Lights Holiday Village at the Panama City Marina includes a scheduled visit from Santa. Additional opportunities may be available at neighborhood celebrations, local businesses and seasonal events.
Are there Christmas markets in Panama City, Florida?
Panama City has local farmers markets, artisan markets and seasonal shopping events where visitors can browse handmade gifts, artwork, specialty foods and other locally made products. The Downtown Farmers Market and Market at St. Andrews are good places to look for local vendors.
Is Downtown Panama City decorated for Christmas?
Downtown Panama City celebrates the holidays with a Christmas tree, festive decorations, seasonal events and decorated storefronts along Harrison Avenue. Visitors can explore the neighborhood’s shops and restaurants while enjoying the holiday atmosphere.
What can couples do for Christmas in Panama City?
Couples can enjoy waterfront dining, browse holiday markets, explore the decorated streets of Historic Downtown and St. Andrews, or watch the Boat Parade of Lights along St. Andrews Bay. Seasonal performances and local shopping also make great additions to a holiday date night.
Is Panama City, Florida, a good destination for a Christmas getaway?
Panama City offers mild coastal weather, waterfront dining, historic neighborhoods and family-friendly holiday traditions. Visitors can enjoy Christmas celebrations alongside year-round activities like shopping, museums, art galleries and scenic walks along St. Andrews Bay.
Where can I find upcoming holiday events in Panama City, Florida?
Visit the Destination Panama City Events Calendar for holiday celebrations, Christmas parades, seasonal markets, performances and family-friendly activities. Event dates and schedules may vary each year.