Born in Rome into a wealthy family, Panaro studied acting under Teresa Franchini.[1] She made her film debut at 16 years old, and got a large success in 1956 thanks to the Dino Risi's comedy film Poor, But Handsome, then specializing in romantic comedies.[1] In 1957–8, together with her Poor, But Handsome co-star Lorella De Luca, she assisted Mario Riva in presenting the popular RAI game show Il Musichiere.[1]