While the beaches and the clear, turquoise-green waters of the Gulf of Mexico are Panama City's biggest attraction, you'll find plenty of other affordable things to do. The exhibits at the Museum of Man-in-the-Sea tell the history of diving. Here, you'll see early animal bladders plus nineteenth-century diving equipment, like bulky helmets and diving suits, torpedo-like propulsion vehicles, and underwater cutting devices, which will bring back images from Jules Verne's classic 20,000 Leagues under the Sea. There are also sea-lab chambers, like the type used in modern undersea exploration, plus an excellent exhibit on underwater oil drilling. The U.S. Navy outfitted the first SEALAB, an underwater research vessel in Panama City. Other exhibits display treasures from Spanish galleons found off the Florida coast. Admission is $5 per adult and $2.50 per child, 6 to 16. (Open 9 A.M.–5 P.M., 850-235-4101)

For the Kids

You'll find the Panama City area a great place to entertain kids, especially active ones. Panama City Beach is a true all-American beach resort, with miniature golf courses, amusement parks, water parks, and go-cart raceways. While they'll enjoy playing in the sand during the day, you can also be sure they'll have fun at night.

One of the top attractions here is Gulf World Marine Park, featuring the usual dolphin and sea lion shows and also unique penguin shows. The marine park's aquarium displays giant stingrays, and your younger children will hold on tightly to your hand as you lead them through the walk-through shark tank. Meanwhile, talking parrots squawk loudly as you make your way through the jungle-like environment. Kids at least 5 years old and 48 inches tall can swim with a dolphin for an hour and fifteen minutes for $150 in summer, $125 in winter. Admission is $24 for adults and $15 for kids 5 to 11. (Open 9:00 A.M.–9:30 P.M., 850-234-5271, www.gulfworldmarinepark.com)

With more than thirty rides, including a rattling 2,000-foot roller coaster and a 40-foot swinging sea dragon, the Miracle Strip Amusement Park will provide your children with hours of fun. From atop the Top of the Strip, a 203-foot-high observation tower, they'll be able to see down the entire beach and out into the Gulf of Mexico.

Across from the amusement park stands Shipwreck Island Water Park, northwest Florida's largest, complete with a wave pool, a “Rapid River Run,” and a kiddy pool called the “Tadpole Hole” (850-234-3333). Nearby, Fun Land Arcade will lure them in with a video arcade, go-carts, and bumper boats (850-234-3693).

If you want to include some educational fun in your kids' itinerary, visit the Junior Museum of Bay County where they'll learn how early pioneers in Florida lived and worked. They'll get to explore a log homestead and an interactive exhibit that teaches them about Florida's history. Indoor exhibits focus on the environment, science, and culture. Suggested donations are $5 for adults and $3 for children under 12. (Open Monday through Friday 9:00 A.M.–4:30 P.M., Saturday 10 A.M.–4 P.M., 850-769-6128, www.jrmuseum.org)

Festivals and Seasonal Events

As a popular southern beach destination, Panama City Beach offers a host of events throughout the year to add to the fun. Here are a few of them:

Saint Andrews Mardi Gras: The Krewe of Saint Andrews hosts this two-day pre-Lenten celebration in mid-February, with parades, live bands, food, and crafts. (www.saintandrewsmardigras.com)

Indian Summer Festival: This highlight of the fall season in Panama City Beach features local food, art, and music on two stages for three days in mid-October. (Toll-free 800-722-3224)