It has shiny reddish-brown fur all over its body and tail that contrasts with the black of its legs. On the tail you can distinguish 12 well-defined rings that alternate reddish and brown. The tail is not prehensile, and is only used to maintain balance when moving through the trees. With a rounded face, it shows white spots on the muzzle, cheeks, over the eyes and on the ears. It has a thick layer of woolly hair under its fur and on the soles of its feet that provides it with warmth. The color of its fur provides perfect camouflage when moving among tree branches, which sometimes have a layer of brown or reddish moss, similar to the color of its fur.

Red pandas have a wide range of vocalizations that they use to communicate.

Solitary in habit, they are most active at dawn and dusk. They have semi-retractable claws that make them great climbers. When they are not foraging, they are usually sleeping in trees. It is much more agile in trees than on the ground.

Male territories include several female territories and all of them are marked by anal gland secretions. They mate on the ground and the female gives birth to two young inside a nest located inside a tree. The babies are born blind and helpless, and open their eyes at 18 days of age. They reach adult size at 12 months and become sexually mature at 18 months of age. Their metabolism is extremely slow, so they sleep for approximately 15 hours a day.