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Called Panjim by the Portuguese, Panaji, which means "the land that does not flood" is the state capital of Goa. Panaji is situated on the southern banks of the Mandovi River, which makes this town all the more charming. Panaji started to gain prominence during the second half of the 18th century when the erstwhile power center of Old Goa gradually faded into oblivion. On March 22, 1843 Panjim was conferred the status of a city and was rechristened `Nova-Goa' or New Goa.

As the state capital, Panaji figures prominently in Goa's tourism scenario. It houses some of the prominent government offices and educational institutions. The 15th century palace of Sultan Adil Shah, now housing the government passport office, is a major landmark of the Panjim city. Other major tourist spots include the Dona Paula beach, a bevy of ancient churches and the Braganza Institute.