Panajachel is a town situated in the southwestern part of the Guatemalan Highlands within the department of Sololá. Located at an elevation of 1,597 metres (5,240 ft), it sits less than 140 kilometres (90 mi) from Guatemala City and serves as the administrative centre for the municipality of Panajachel.
The town is positioned on the northeast shore of Lake Atitlán. It has developed into a significant hub for the regional tourism industry, serving as a primary base for visitors who travel across the lake to explore various surrounding towns and villages. According to the 2018 census, the population of Panajachel was 15,077.