This brief analyses the REDD+ readiness process in Panama, for the purpose of contributing to a better understanding of the context and causes of the current impasse, as well as to glean useful lessons for stakeholders on the institutional conditions necessary for REDD+ processes to be effective, inclusive and equitable. This report is arranged into three sections: i) a brief overview of forest dynamics in Panama, highlighting the importance of the Indigenous Peoples and their territories, along with a description of the stakeholders involved in the REDD+ readiness process in Panama; ii) a chronological presentation of the main events related to the case study; and iii) conclusions and future scenarios for the REDD+ readiness process in Panama. It concludes that a series of key issues were never addressed (e.g. UN-REDD in Panama never substantively recognised the central role of Indigenous Peoples in REDD) which have led to the current standoff.