Pensacola's best eating is built around the Gulf seafood that comes in fresh off the local commercial fleet. Red snapper, grouper, Gulf shrimp, blue crab, and oysters are the standards; the season and the day's catch determine what's available. The most highly regarded restaurants for seafood are generally concentrated in downtown (Jackson's Steakhouse on Palafox does excellent fish and is not just a steakhouse despite the name) and near the beach.
On the waterfront, the Fish House has been a consistent recommendation for years — its deck over the water on Pensacola Bay is the ideal setting for an early evening meal. The McGuire's Irish Pub on Gregory Street is worth knowing as a reliable landmark if you need a good meal and don't want to research further; they have their own brewery and serve solid food. For quicker, cheaper seafood, the fish houses along the bayfront sell straight off the boat.