Glue the inside of shoebox lid to the long side of the shoebox so that the box is nestled in its lid at a perpendicular angle.
Create backdrop inside the shoebox by painting sky and other features, or creating foliage and other terrain features with construction paper and markers, such as rocks and bushes.
Form panda figures using clay or Play-Doh. Roll an ovular shape for the body and a similar smaller shape for the head and four cylinders for the legs. Attach ears and shape a snout. Leave clay to harden or dry. If monotone, paint black and white in style of panda coloring -- using black and white Play-Doh can eliminate the need for painting.
Decorate diorama box with twigs, leaves and grasses. Be sure to make the setting look like a forest a panda might live in -- be sure to add something that looks like bamboo!
Make ground terrain along the bottom of the diorama box. Attach grasses, twigs and greenery; make a river, rocks or other details with clay or construction paper.
Affix panda(s) with glue to the base of the diorama. If desired, make a title for your diorama by writing along the top or bottom facing edge of the diorama.