Well before the Spanish colonization, the area was already long visited by Chinese and other Asian traders, as evinced by archaeological finds of Tang, Song, and Ming dynasty porcelain and trade wares. Panglao flourished during the rule of the Dapitan kingdom, but raids by Moluccans and conquest by Ternate resulted in periods of depopulation when its population fled mostly to Panay and Mindanao, including Dapitan. During the Spanish rule, a Jesuit mission post was established, that in 1782 was formed into a parish, known as La Iglesia de San Agustin de Panglawod. In 1803, the town was officially made into a municipality. The Panglao watchtower was built in 1851. The 5-storey octagonal tower is the tallest of its kind in the Philippines but suffers from neglect.
Geography
The municipality occupies the southwestern part of the eponymous Panglao Island, and its territory also includes the three smaller islands of Balicasag, Gakang, and Pontod. There are no fresh water streams or lakes on the island, so for its drinking water, the municipality is dependent on wells and the Canhilbas Underground Spring.
Climate
Barangays
Panglao comprises 10 barangays:
Demographics
Tourism
The primary tourist attraction of Panglao are its white sandy beaches, of which Alona Beach is the most famous and most developed. Alona Beach is about long, lined with palm trees. resorts, and shops. However it has drawn criticism for its unrestrained development that ignored municipal development policies, warning against overcrowding and Alona to lose its paradise-like image. Therefore, the municipal, provincial and national governments are ploughing ahead with a plan to build a new international airport on Panglao island, with the final approach path directly over Alona beach. Currently plan is to be operational at the end of 2018. Other beaches include Bagobo, Bolod, Danao, Doljo, and Momo Beaches. Panglao is renowned for snorkeling and dive sites such as Doljo Beach, Garden Eels, Arco Point, Kalipayan, Napaling, and Puntod. The island's southern portion is ringed with reefs that are relatively narrow and shallow with submarine cliffs plunging to depths of. Tours can readily be arranged to further dive sites, including Balicasag and Pamilacan, Bohol islands.