Mimmo's has outstanding food. Location is not great but the food makes up for it. You might want to make a reservation here. Tuscany Italian is also excellent.
McGuires has fantastic irish-themed food. Best steaks and prime rib around, wonderful lamb chops, fantastic salads, great 18-cent Senate bean soup.
Pepitos has pretty good Mexican dishes, but not everyone in my family has been happy here. Cantina Laredo in Sandestin is good, they make guacamole at your table and I really like the carnitas. This is a chain restaurant, but still pretty good.
The Craft Bar-one in Destin, one in Sandestin, and I think now one in PC- serves more American food. Fantastic bison burgers, great huge tender pork chop, fantastic fried chicken, wonderful Sunday brunch, HUGE selection of beers on tap.
Hope that helps give you some ideas, though there are many more options around.Edited: 07 June 2018, 10:26
La Paz, for the Mexican cuisine part of your question.
Friday night El Jalisco has music as well.
We think La Paz is the best Mexican in town (by far), then Crab Island Cantina is second best (very good fish tacos). El Jalisco is decent, as is Mezcal, and Pepito’s has been a long time locals favorite. Cantina Laredo is ok but inconsistent.
As far as Italian goes, Mimmo’s, Pazzo Italiano, and Fat Clemenza’s are all very good (they all have similar items and recipes), and La Famigila is pretty good as well. Emeril’s Coastal Italian is very good but more upscale and pricier- a nice date night for couples but probably not as “kid friendly” as other choices.