Panola County is a county located in the U.S. state of Texas. As of the 2020 census, its population was 22,491. The county seat is Carthage. Located in East Texas and originally developed for cotton plantations, the county's name is derived from a Choctaw word for cotton. Until 2013, Panola County was one of about 30 entirely dry counties in Texas: the sale of alcohol was restricted or prohibited.