
Panda is a supporting character in YIIK. He's Alex's childhood imaginary friend, and acts as a source of guidance and critique for Alex's actions. As a tool, he can be used to cross narrow gaps and block movement. He is also a skill in combat, which can block enemy attacks for multiple turns.
Panda is first found in the Factory Hotel, sitting in a room containing pieces of Alex's bedroom. It isn't known why he was here, but he readily joins Alex, providing the Panda Barrier tool and move. Over the course of the story, he occasionally chimes in whenever Alex is alone to comment on current events.
Right before New Years Eve, Panda gets Alex to question everything weird going on in his reality. He reminds Alex on how Michael moved away from Frankton when he was only 10 years old, and that they had a falling out before the left, bringing a lot of suspicion as to who Michael is.
During Chapter 6, Alex asks him what they should do now that they're lost in the Soul Space. Panda gives him no answer, revealing himself to just be a panda doll and drifting off into space. Alex is devastated by the loss, with Panda remaining absent from that point onward.