In a panorama navigation method using a portable electronic device, the portable electronic device includes a GPS, an electronic compass and a touch screen. A user operation interface is displayed on the touch screen, and driving information is received from a user operation interface when a driver arranges a driving route in a geographic region. The driving route is marked on an electronic map of the geographic region according to the driving information. The GPS detects a current location of a vehicle, and the electronic compass identifies a driving direction of the vehicle. The portable electronic device obtains a series of panoramic images of the geographic region from a host computer according to the current location, the driving direction and a current time of the vehicle, and displays each of the panoramic images on the touch screen to provide panoramic navigation information for the driver.