A daughter of actor Chunky Panday, she began her acting career in 2019 with roles in the romantic comedies Student of the Year 2 and Pati Patni Aur Woh.

[6] 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 Karan Johar's studio Dharma Productions.

[12] Panday next starred in Pati Patni Aur Woh (2019), a remake of the 1978 film of the same name, alongside Kartik Aaryan and Bhumi Pednekar.

[20] She next appeared alongside Deepika Padukone, Siddhant Chaturvedi and Dhairya Karwa in the 2022 romantic drama Gehraiyaan, which released on Amazon Prime Video.

[21] Her performance was well-received,[22] with Anna M. M. Vetticad from Firstpost writing, "The surprise in this ensemble is Panday who brings a gravitas to Tia's confusion and innocence that makes you wonder why she chose to debut with the hollow gloss of Student of the Year 2".

[32] She then starred in Kho Gaye Hum Kahan, a coming-of-age drama about the negative effects of social media, alongside Chaturvedi and Adarsh Gourav.

[33] Saibal Chatterjee of NDTV wrote that she "does a fair enough job of a character stuck in a single-note loop", while Scroll.in's Udita Jhunjhunwala found her "highly convincing as the jilted obsessive stalker seeking social media validation".

[34][35] The Indian Express evaluated that her urban roles in Gehraiyaan and Kho Gaye Hum Kahan suited the actress better than the ones she performed in commercial cinema such as Dream Girl 2.

[38] Panday expressed how her foray into the comedic genre was "challenging", and emphasised the difficulty in having to headline a project rather than play a "reacting" role to the lead star.

[41] The Hindu's Shilajit Mitra analysed that her privileged characters in Gehraiyaan, Kho Gaye Hum Kahan and Call Me Bae were all "in her proximate wheelhouse".

[45] Panday will continue her collaborations with Dharma Productions with the biopic Shankara, starring Akshay Kumar as C. Sankaran Nair,[46] and the romance Chand Mera Dil opposite Lakshya.