The Panamanians' dogged refusal to accept defeat stole the headlines that would otherwise have belonged to Angel Correa, the Albiceleste star who bagged a brace.
Correa arrived in New Zealand hotly tipped to be among the tournament's big stars and he more than lived up to his billing with an outstanding individual display.
When Argentina took the lead in 14 minutes, it was no surprise that the Atletico Madrid forward was the scorer, firing home expertly from eight yards after latching on to a cross from Tomas Martinez.
Panama remained dangerous at the other end and just six minutes later equalised with an early contender for goal of the tournament.
Jhamal Rodriguez was the goalscorer, having picked up the ball in a seemingly harmless position only to turn and smash an unstoppable right-foot shot into the top corner from 25 metres.
But Correa again popped up - this time with just 10 minutes remaining - to inch Argentina in front. On this occasion, his goal was all about opportunism as he snatched on an error by goalkeeper Jaime De Gracia to knock the ball into the unguarded net.
But Panama weren't ready to accept its fate and just four minutes later restored parity. Fidel Escobar was the hero, bursting through on to a Carlos Small cross to meet the ball on the half-volley and hammer a shot into the back of the net.
The underdog could even have gone on to win it when Small missed the target after racing clean through, but it will be thrilled with a point that leaves it well placed in a section that also includes Ghana and Austria.
Meanwhile, United States picked up its first win in four FIFA U-20 World Cup matches to secure the perfect start to New Zealand 2015 with a 2-1 victory over Myanmar.
United States picked up its first win in four FIFA U-20 World Cup matches to secure the perfect start to New Zealand 2015 with a 2-1 victory over Myanmar on Saturday.
It looked like there could be an upset on the cards after Yan Naing Oo scored the tournament's opening goal, but strikes from Maki Tall and captain Emerson Hyndman saw the Stars and Stripes top Group A after the first round of games.
USA was slow out of the blocks and the Asian underdog was quick to take advantage, roared on by a supportive crowd at the Northland Events Centre.
A whipped corner caused chaos at the near post and Yan Naing Oo stabbed past keeper Zack Steffen.
But the US was qui quick to hit back.
A steady increase in pressure saw Kellyn Perry-Acosta's cross scrambled behind for a corner, but captain Emerson Hyndman's dead-ball was clinical. Cameron Carter-Vickers' flick-on made its way to the back post, where Maki Tall was on hand to volley into the roof of the net.
The clincher came in the 55th minute when Rubio Rubin led a quick counter attack, laying off for Hyndman to slot home.
USA will look to secure passage to the Round of 16 against host New Zealand, while Myanmar will hope to bounce back against Ukraine.
