Stop counting calories and indulge in the culinary delights of the Seafood Capital of the South! From gastronomic hotspots to foodie-friendly accommodations, this is your ultimate guide to the best food in Panama City Beach.

When it comes to food, Panama City Beach is a true treasure trove of tantalizing tastes. With Florida being recognized as one of the US cities with the best seafood, this bustling resort town is a gastronomic delight where local and unique culinary experiences are at the heart of every meal. This destination is a food lover’s dream where every corner introduces a new opportunity for exciting culinary exploration.
Are you ready to indulge in the ultimate foodie’s quest for the best food in Panama City Beach? If so, pull up a chair and join us as we uncover the city’s vibrant dining scene! Let’s have a feast of the town’s delectable dishes and discover gorgeous vacation rentals that’ll make your stay unforgettable.
Seafood Extravaganza: Taste the Freshness of Panama City Beach
Let’s start our culinary journey in Panama City Beach by diving headfirst into its vibrant seafood scene. With the Gulf of Mexico providing an abundance of fresh catch, the seafood dishes served here are as fresh as it gets.
Grouper Tacos
One local favorite you shouldn’t miss is the Grouper Tacos. This dish is a love letter to the palate, showcasing tender pieces of grouper seasoned and cooked to perfection, nestled within soft tortillas. Dee’s Hang Out, a laid-back diner loved for its Southern-style seafood, serves this standout dish.
Fresh Gulp Shrimp
Next on our list is the Fresh Gulf Shrimp, a dish best enjoyed while soaking in the waterfront views at Runaway Island. This beachfront restaurant and grill house prides itself on their fresh-from-the-water shrimp that bursts with flavors in every bite.Â
After your meal, make sure to explore Runaway’s outdoor deck. It’s complete with a boardwalk that extends all the way to the beach!
Oyster on the Half Shell
Lastly, if you’re game for a traditional seafood experience, try the Oyster on the Half Shell at Dusty’s Oyster Bar. This local favorite serves its oysters raw, smoked, or baked, according to your preference, providing a real taste of the ocean’s bounty.
As you treat your taste buds to the best food in Panama City Beach, don’t forget to also take in the breathtaking views of the Gulf. This is actually what makes your dining experience in the South even more memorable!
Where to stay: After a day of tasting the best seafood dishes, cap off the night at Aqua Beach Resort. This property is just a 5-minute walk from the beach, making it the perfect coastal spot to unwind after your culinary adventures.

Dine Local: A Journey Through Historic St. Andrews
When it comes to the best food in Panama City Beach, Historic St. Andrews holds its own with a mix of classic diners and innovative establishments. Experience Southern comfort food with a twist at Hunt’s Oyster Bar and Seafood Restaurant, and don’t miss their take on the Crab Cakes, which have become a local staple.
If you’re up for a farm-to-table experience, The Little Village in St. Andrews offers a unique outdoor shopping and dining experience. Here, their Fish Tacos, made with the catch of the day, is always the talk of the town!
For your sweet tooth, a visit to David’s Sno-Balls is a must. A local gem in St. Andrews, it offers over 60 flavors of the famous New Orleans-style snowballs. It’s the perfect way to end a meal or cool off on a warm Florida day.
Where to stay: Once you’ve satiated your cravings, rest your head in one of the oceanfront units of WaterCrest Condos, only a 30-minute leisurely walk away from St. Andrew’s State Park.Â
Unique Dining Experiences in Panama City Downtown
Panama City Downtown is not only the city’s hub of commerce and culture, but it’s also a haven for foodies looking for unique dining experiences. Visit The Place Downtown for their scrumptious Soft Shell Crab Sandwich or the famous Oyster Pub for its enticing Oyster Rockefeller.
If you prefer a meal with a side of history, Trigo San Francisco Style Deli is also a must-visit. Set in a historic Panama City building, it offers an array of delicious sandwiches, soups, and salads.
End your food journey downtown with a sweet treat from Riviera Creamery. Their selection of gourmet fine chocolates and ice cream will surely make you buy more than you planned!
Where to stay: After exploring downtown’s culinary scene, unwind at Fairfield Inn & Suites. Here, you can relax and digest while enjoying views of St. Andrews Bay from your fully serviced room.
A Taste of the Lower Grand Lagoon
For the ultimate al fresco dining experience, the Lower Grand Lagoon area offers waterfront restaurants with a stunning view of the marina and the bay. Kickstart your food journey at the Grand Marlin Restaurant, known for its fresh oyster selection and the famous Blue Angel Chips.
Next, head to Liza’s Kitchen for their delicious Lobster Roll and their one-of-a-kind Nic-Nac Chicken Salad. To complete your Grand Lagoon dining adventure, enjoy a glass of wine at The Craft Bar, a trendy spot offering an extensive wine list and light meals.
Where to stay: After a day of eating and sightseeing, come home to the relaxing vibe of Casa Palmera. Equipped with a hot tub, private pool, and 4 bedrooms, this property is the ideal spot for a rejuvenating soak after feasting around Lower Grand Lagoon. Plus, it’s super pet-friendly!
Savoring Sunnyside: A Hidden Culinary Gem
When it comes to finding the best food in Panama City Beach, don’t overlook the smaller neighborhoods like Sunnyside. Here, you’ll find gems like Saltwater Grill, renowned for its tantalizing Crab Stuffed Gulf Grouper. Plus, the mesmerizing 25,000-gallon tropical saltwater aquarium inside the restaurant will make you feel like you’ve stepped into a totally different world!
For something more casual, Mike’s Cafe and Oyster Bar is a hit among locals. Make sure to try its mouthwatering Fried Green Tomatoes and famous Oyster Po Boy!
Wrap up your Sunnyside food tour with a sweet treat from Thomas Donuts, known for its extensive selection of donuts and other quick bites.
Where to stay: As the day winds down, retreat to your beautiful vacation rental at Parrothead Paradise Home. This elegant, 3-bedroom abode offers all the comforts of home, allowing you and your family to rest and refuel for the next day’s culinary adventure.Â
Unleash Your Inner Foodie in Panama City Beach with RentByOwner
Panama City Beach is truly a haven for food lovers. From fresh seafood right out of the Gulf to unique local delights, each dining experience promises a palate-pleasing journey. But remember, it’s not just about the food! It’s also about the place, the people, and the memories that you create with every bite. So, don’t just dream about it – plan your trip and taste the best food in Panama City Beach.
The city’s culinary scene is constantly evolving, reflecting the creative spirit of local chefs and the rich bounty of Florida’s waters. And when it comes to finding the perfect place to stay after your food ventures, RentByOwner is here to help. Our selection of properties caters to different styles and budgets, ensuring you find a home that’s as satisfying as your meals.
So what are you waiting for? Come explore everything that Panama City Beach has to offer. From unique beach eats to five-star eateries and accommodations, your foodie dreams can become a reality in this delicious destination.
Bon appétit!
TLDR
Dive into the vibrant culinary scene of The Sunshine State and discover the best food in Panama City Beach. From seafood dishes to unique local fares in Historic St. Andrews, Downtown, the Grand Lagoon, and Sunnyside, every food adventure here is a must-try.
This blog also recommended some places to stay to make your food journey extra comfortable and memorable. Plan your trip now and RentByOwner will help you find the perfect home away from home.