Panday was born on 30 October 1998 to actor Chunky Panday and costume designer Bhavna Panday.

Panday made her acting debut in 2019 with the teen film Student of the Year 2, co-starring Tiger Shroff and Tara Sutaria, which was produced by Dharma Productions.

Panday starred in Pati Patni Aur Woh (2019), a remake of the 1978 film of the same name.

Panday won the Filmfare Award for Best Female Debut for her performance in both Student of the Year 2 and Pati Patni Aur Woh.

Panday studied at Dhirubhai Ambani International School until 2017.

Panday participated in Vanity Fair's Le Bal des debutantes event in Paris in 2017.

Panday starred in the 2020 action film Khaali Peeli, co-starring Ishaan Khatter.

In 2022, she appeared alongside Deepika Padukone and Siddhant Chaturvedi in the romantic drama Gehraiyaan, which released on Amazon Prime Video.

Panday will next feature with Vijay Deverakonda in Puri Jagannadh's action film Liger, a bilingual production in Hindi and Telugu languages.

Panday will also appear in the coming-of-age film Kho Gaye Hum Kahan alongside Chaturvedi and Adarsh Gourav.