The app will allow people to support their nation's athletes by using "Flag tags," a flag graphic that can be superimposed over the user's picture, marketing-interactive.com reported Monday.
The Flag tag can then be shared via Facebook, Twitter and e-mail.
"We wanted to find a way of combining tradition and innovation to express what the 2012 Olympics is all about," Carl Gonsalves, digital director of Panasonic's creative agency Brave, said.
"With Flag Tags, Panasonic can encourage people around the world to pledge support for their team by decorating their face in national colors and dedicating their social profile to the chosen team."
The app, celebrating Panasonic's sponsorship of the Olympic and Paralympic games, will launch worldwide covering more than 20 Facebook territories, and the mobile version on Android and iOS devices will be launched in mid-June, Panasonic said.