Panajachel, usually shortened to Pana, is the front door to Lake Atitlán. It sits on the north shore where the road from Guatemala City and Antigua drops to the water, so almost everyone passes through at least once. The town is busy, convenient, commercial, and better than its transit-hub reputation suggests.
The main tourist strip is Calle Santander, a long run of textile stalls, cafes, travel agencies, and shops. The lakefront and Tzanjuyú dock are more important: this is where lanchas leave for San Pedro, Santiago, Santa Cruz, and the smaller villages around the caldera. On clear mornings the view across the water to Tolimán, Atitlán, and San Pedro volcanoes is magnificent.
Panajachel is less intimate than San Pedro la Laguna and less spiritual than San Marcos, but it is the easiest base for first-time visitors. You have banks, pharmacies, shuttle offices, a choice of restaurants, quick boat access, and the excellent Reserva Natural Atitlán just outside town.
Stay here if you value convenience, short stays, or day trips. Move to one of the villages if you want quiet evenings and a stronger sense of lake life.