Seismologists determined the quake was centered about 35 miles (55 km) west-southwest of David, Panama, at a shallow depth of only 4 miles (6.6 km).
Shaking was felt as far away as Costa Rica’s capital of San Jose as well as deep into Panama at 1:11 a.m. local time.
Many people near the epicenter slept outside for the remainder of the night as aftershocks kept them too frightened to go back into their homes.
In a statement, Panamanian officials said seven homes were damaged and one house collapsed in the district of Baru, in the western province of Chiriqui.
A school in the banana-growing community of Puerto Armuelles also sustained damage, according to the same officials.