The Panda Village is a farming village that sits in the hills between a river and a vast bamboo forest. Once home to many giant pandas, it now lies abandoned with the ruins of old farmhouses. It is the birthplace of Po, who visited the village in Kung Fu Panda 2 and attained inner peace.
The Panda Village was once a peaceful and abundant farming village populated entirely by giant pandas. Among these villagers at the time were Po's father and mother, who lived happily with their infant son. But one day, an evil albino peacock by the name of Shen and his pack of wolves invaded the village, destroying everything and everyone in their path. Outnumbered and overwhelmed by the pack's forces, the villagers were forced to flee their home. It is unknown exactly what happened, but most did not manage to escape in time; those who did either managed to escape entirely (like Po, his father, and presumably some others), or escaped the village but were caught later (like Po's mother and presumably some others as well).
Since then, the abandoned village laid unpopulated and in ruins for thirty years. After being blasted out of Gongmen City's Fireworks Factory by one of Shen's cannons, Po was knocked unconscious and was dragged along a river that ran through the village. The Soothsayer found him on the riverfront and carried him into his old farmhouse, where he was nursed back to health and consciousness. It was here that Po finally let his struggling memories of the village raid break through the surface of his mind, and in doing so managed to achieve inner peace.
- Art director Tang Kheng Heng explained that this location was "inspired by Lijiang in the Yunnan Province [of China], where pandas once lived in abundance and where the snow-capped Himalayas add to the majesty of such a special place."
- Although the village appears abandoned, bamboo has started to grow in between the farmhouses' burnt wood, serving as a visual symbol of rebirth to a formerly devastated location. This was done to symbolize the village's role in providing Po with a new sense of recognition and growth.