The purpose of this thesis is to analyse how China utilizes the giant panda in its public diplomacy through panda diplomacy. The thesis analysed panda diplomacy’s role in Chinese public diplomacy through a qualitative multiple-case study based on theories of soft power and public diplomacy, and used data sources such as: news articles, academic journals and official statements from Chinese officials where available. The findings of the thesis are the following: panda diplomacy is a highly utilized Chinese long-term public diplomacy tool that has the power to address China’s public diplomacy goals, incentivize positive bilateral behaviour from countries it practices panda diplomacy in, and increase foreign publics’ positive associations with China in a way that is more accessible than other Chinese public diplomacy tools such as Confucius institutes or student exchanges. China’s government is closely linked with panda diplomacy and carefully plans the process of panda diplomacy before, during and after panda agreements are made. China’s choices of countries to enter into panda agreements with are made based on good relations or good trade prospects. Although it can be difficult to say with certainty the direct impact of one singular public diplomacy tool on policy outcomes, this thesis was able to uncover strong links between panda diplomacy and political events that can increase the understanding of how panda diplomacy functions within China’s public diplomacy and building of soft power.