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The more correct name for a Panama Hat is the Toquilla Straw Hat. These hats are made in Ecuador using the indigenously available Toquilla straw or the jipijapa palm. As these hats were transported from the Gulf of Panama, they have come to be known as the Panama hats.

Panama Hats are light-weight and made from light-colored straws. As the straw is woven, the hat has weave holes making it breathable and perfect for summers. The weaving of these hats is an intangible cultural heritage of Ecuador, as per UNESCO.

Panama hats generally have a dent across the crown top and a ribbon around the crown. Further, they can even be rolled up and fitted in a thin box for travelers.

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