Panasonic’s newest Micro Four Thirds camera, the diminutive Lumix DMC-GM1, is sure to turn a few heads. The impressively small shooter looks a lot like a compact point-and-shoot camera from a distance, but close examination shows that it’s an interchangeable lens model. And unlike Pentax Q7($494.09 at Amazon)(Opens in a new window), the GM1 doesn’t achieve the feat by using a point-and-shoot image sensor: it’s got a 16-megapixel Micro Four Thirds sensor under the hood.

To be specific on size, the GM1 measures 2.2 by 3.9 by 1.2 inches (HWD) and weighs 6.1 ouncers; the Q7 is 2.3 by 4 by 1.3 inches and 6.4 ounces in weight. The GM1 is just barely smaller, and those figures are without a lens attached, but the compact, collapsible Lumix G Vario 12-32mm f/3.5-5.6 ASPH. / Mega O.I.S. lens that ships with the body is just as shallow as a pancake prime when it’s collapsed.

The camera is fairly advanced on the inside; it packs the same sensor and image processor as the larger Lumix DMC-GX7, so you won’t have to skimp on image quality in order to get a smaller body. There’s no accessory port or EVF, so you’ll have to rely on a 3-inch touch-sensitive display for focus and framing images. Raw capture is supported, but you can also shoot in JPG if you prefer, and video quality tops out at 1080i60—you’ll need to drop down to 720p if you want 60p video.

There is a pop-up flash; it’s on a hinge, and can fire when tilted back, giving the camera a modest bounce flash capability. Panasonic couldn’t squeeze a full-size shutter into the camera. The mechanical shutter features a second curtain only—the first curtain is electronic—and offers an extremely modest top speed of 1/500-second. You’ll need to invest in some neutral density filters if you want to shoot at wide apertures in bright daylight. You also have the option of using an electronic shutter only; placing the camera in silent mode disables all sounds, the assist lamp, and the flash. It’s a nice feature, but the mechanical shutter is impressively quiet on its own—it’s not that much louder than the cloth focal plane shutter in a Leica M3.

The GM1 will be available in a black color scheme in the U.S., but international customers will also have silver, white, and orange options. It’s set to go on sale in November for $749.99. That price includes the 12-32mm lens, which will also be available on its own for $349.99.

Panasonic also plans to offer a modest handgrip for the GM1. It screws into the tripod socket and boasts aluminum construction. It’s priced at $99.99. There’s also a new compact prime lens coming down the road; the Leica 15mm f/1.7 doesn’t have a price yet, but expect it in 2014.