The Panama hat is a traditional brimmed straw hat originating from Ecuador, despite its name suggesting otherwise. The misnomer "Panama hat" arose because these hats gained popularity during the construction of the Panama Canal in the 19th century when many workers wore them to shield themselves from the sun.

Spanish colonizers introduced the craft of weaving to Ecuador. The hats are woven from the straw of the toquilla palm plant, which grows abundantly in Ecuador's coastal regions. Skilled artisans, often from the coastal town of Montecristi, meticulously weave the hats by hand, a process that can take several months for the finest quality hats.