Callaway is a city in Bay County, Florida, United States, and is a suburb of Panama City. The population was 13,045 at the 2020 census, down from 14,405 at the 2010 census. It is part of the Panama City–Panama City Beach, Florida Metropolitan Statistical Area. The first arrest for the sale to a minor of an explicit album occurred in Calloway in April 1987, when a music-store clerk was charged with "sale of harmful material to a person under the age of 18," a third-degree felony.