This article examines the unusual public security reform process that took place in Panama in the wake of the US military invasion of December 1989. The changes to the Panamanian security forces that ensued were in equal part a ‘demilitarisation’ process, a police reform and an (imposed) transition to democracy where the political domination of the Panamanian security forces came to an abrupt end. Deploying the concepts of demilitarisation, professionalisation and depoliticisation, the article evaluates the political role and activities of police forces and the nature of their relationship with the main Panamanian political actors through to the present Torrijos administration. It then assesses the implications for wider political processes, suggesting that explanations for the success or failure of reform are unlikely to be found in the examination of the design and implementation of the reform itself, but that broader political processes must be analysed in order to understand the dynamic that underpins it.