When it comes to biodiversity, Panama is off the charts. Boasting the Western Hemisphere's second largest rain forest—dwarfed only by the Amazon—Panama is home to a dizzying array of creatures who've crawled, slithered and flapped here from the North and South American continents. (It's also haven to a handful of endemic inhabitants.) Nearly 1,000 species of birds have been recorded here—that's more than in the United States and Canada combined! Keep your camera handy during our forays into the forest, as it's not uncommon to spot such creatures as four-legged sloths, raccoon-like coatimundis and howler monkeys.

Panama's greatest resource—and one of the reasons we find this country such a joy to explore—is its laid-back and warmhearted people. You'll meet our welcoming local friends, who happily reveal the traditions and customs that define the country's rich culture. Spend time with members of the native Emberá community, who offers insight into Panama's oft-overlooked indigenous groups. Learn the difference between a three-wattled bellbird and an ocellated antbird from our jungle guide, who gushes with fascinating facts. From naturalists to coffee producers to snorkeling guides, our local contacts have stories you and your family won't want to miss.

Of course, no visit to Panama would be complete without experiencing the country's famous canal, one of the most awe-inspiring of all human achievements. Constructed across one of the narrowest and lowest points of the Isthmus of Panama, it reaches 51 miles from the city of Balboa on the Pacific Ocean to Colón on the Caribbean. On average, it's a 15-hour trip to fully traverse the canal through its three sets of locks. Learn about the canal's history and importance in the region during a private tour of Miraflores Locks. Then dine canal-side as you watch the vessels navigate the famous waters.

Spend the night at the premiere Gamboa Rainforest Resort. Nestled within wildlife-rich Soberanía National Park, this stunning former residence of the Panama Canal's administrators has been restored to its 1930s splendor. In Boquete, retire to the European-style Panamonte Inn & Spa. Praised by Condé Nast Traveler, it's the country's only Small Luxury Hotels of the World member, where you'll enjoy elegant accommodations and superb cuisine. Parents and kids alike scan the water for dolphins and whales during our stay at the Cala Mia Boutique Hotel, an atmospheric eco-lodge run entirely on solar power and offering a blissfully secluded setting on Boca Brava Island.