Panama has over 1400 islands, same are Pacific, some Caribbean. Most with white sand beaches, some developed for tourism, some totally inhabited. Perhaps the most famous group of islands are the Pearl Island which consists of about 100 islands, sitting in Gulf of Panama, around 30 miles from Panama City. The main island being Contadora.
You will find plenty of options of lodging and if you are in the market for a luxury island house, this might be the place. Other islands in the Pearl Islands are Saboga, Viveros and Isla Del Ray.
A popular weekend spot is Taboga Island which sits only a 20 minute ferry ride from Panama City. They have many options for lodging and restaurants. A bit further away from Panama City, in the Gulf of Chiriquí sits Isla Coiba. Recognized by many as a top fishing spot and also famous for its diverse marine life and jungle animals. We have already touched on Isla Grande and San Blas in the Caribbean section.