Type 2 Diabetes mellitus (T2DM) imposes a major economic burden in Latin America, costing $45–55 billion in 2016 and projected to rise disproportionately relative to GDP. In Panama, research gaps persist regarding diabetes-related complications, treatment patterns, cultural perceptions, and health system performance, with most studies focusing only on prevalence. The objective assesses knowledge, attitudes, and practices (KAP) regarding T2DM among adults in rural Panama to inform targeted education and healthcare strategies. A 40-item KAP survey was conducted in a cross-sectional study of adults (≥18) in La Garciana, Rincón Largo, Llano Largo, and Isla Cebaco using convenience sampling. The Spanish-translated, pilot-tested survey assessed T2DM knowledge, attitudes, practices, and demographics among individuals with and without prior diagnosis. Descriptive statistics and group comparisons were performed using chi-square and t-tests (p < 0.05). Knowledge gaps were most evident in identifying T2DM markers and diagnostic criteria. A total of 70 responses were recorded. Physical activity differed markedly, with most non-diagnosed individuals reporting ≥5 hours/week of exercise compared to minimal activity among diagnosed participants. Despite these disparities, many participants expressed high confidence in their ability to access resources and manage T2DM. Findings reveal discordance between beliefs, practices, and perceived self-efficacy. These site-specific insights highlight the need for culturally tailored education, improved lifestyle interventions, and community-based strategies to enhance T2DM prevention and management in rural Panama.