The first movie theater in Panama opened its doors in 1905, and was called Aurora Theater, located between Sixth and Fourth Streets, in San Felipe. 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 old Bella Vista and the Lux Theaters. The Alhambra 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.