Named one of the “100 Best Small Art Towns in America,” Panama City hosts a variety of local art treasures. The Visual Arts Center of Northwest Florida, located in the heart of downtown Panama City offers museum quality national, local and traveling art exhibit spaces, adult and children's art classes, art appreciation lectures, seminars, and workshops. Most private art galleries in Panama City are located in the historic downtown area around the Visual Art Center and along the beach. The Gallery of Art at 36 W. Beach Drive has been exhibits art by local and regional artists for over 50 years. Additional galleries along Panama City Beach include: Artistic Accents, J. Adams Gallery and Old World Art Gallery. Downtown favorite galleries include: Paul Brent Gallery, Vision Quest Gallery and State of the Art Gallery.

On the performing arts scene, the Martin Theater presents theater touring groups, well-known performing artists and Kaleidoscope Theatre is in its 28th season of local theater productions. For top-name entertainment, The Marina Civic Center, managed by the Bay Art Alliance, also hosts a diverse variety of touring groups and individual artists.