This picturesque medieval hamlet is very close to Tuscany and in the Middle Ages it was frequently under Tuscan rule. Only 15 km separate it from Tuscany. Cortona which is in Tuscany, is visible on the other side of Lake Trasimeno. Panicale is only 20 minutes by car from Castello Monticelli. It is surrounded by rich vineyards and olive groves and the very short distance from Lake Trasimeno probably contribute to the fertility of their soil. From Panicale, which is at the top of a high hill, one enjoys the view of the whole lake. Given its small size Panicale is quiet and peaceful, nevertheless it has three good restaurants.
Once upon a time it was an unconquerable medieval fortress which was important for the control of Lake Trasimeno and for the trade between Umbria and Tuscany. It has works of art of unquestionable value. Inside the small Church of San Sebastiano there is a fresco by Pietro Vannucci, also called il Perugino, painted in 1505 and a painting which is attributed to Raffaello, his student at that time. Inside the Cathedral of San Michele there is a beautiful painting by Masolino da Panicale, who was born in Panicale.
Worth mentioning are also the fountain from the 15th century in the Piazza Umberto I, which is still perfectly preserved and which until the end of the 19th century was the main source of water for the town, the square at very the top of the hill where there is the medieval Municipal Palace and the Teatro Caporali, a very charming and small antique theatre.
Panicale was specilized in the art of embroidery of tulle and was famous for this all over Italy. This antique tradition called in Latin Ars Panicalensis was trasmitted from mother to daughter. Inside the town there is a museum of Embroidery.