Two subspecies of the Pallas's cat (Otocolobus manul) are tentatively recognised:

• Otocolobus manul manul distributed across China (Gansu), Mongolia, Central Asia, Kazakhstan, South Siberia, Iran, Afghanistan and Pakistan and
• Otocolobus manul nigripectus inhabiting Tibet, Kashmir, Nepal and Bhutan.

However, further research is required as the species possibly is monotypic.

The Pallas's cat is a very distinctive looking felid with short legs, stocky compact build, and long fur which makes it look larger than it is. The hair on its underparts is nearly twice as long as on the top and sides, an adaptation that keeps Pallas's cat warm in the extreme cold winter conditions that are typical of its habitat. The coat colour of Pallas's cat varies from grey in the north of its range to tawny or fox-red in some parts in the south of its range. The colour can also vary according to the seasonal moult. The hair tips are white producing a silvery, frosted appearance. The chin, throat and belly are white. Its legs are marked with indistinct black bands. Its tail is thick, and short (about half of the body length) with a black coloured tip and marked with several narrow black rings. The coat colour and markings provide excellent camouflage and help the Pallas's cat to blend into its surroundings. The face of Pallas's cat is broad and flattened and its ears are small, rounded and set low on the head. The forehead is patterned with small black spots and the cheeks with dark and white stripes. The low profile of its head is an adaptation to hunting in open country where there is little cover. Its eyes are bordered with white and black lines and feature a unique third eyelid which functions as protection against the cold winds and the dust storms that are common across its range.

The Pallas’s cat is classified as Near Threatened in the IUCN Red List and also in the National Red Lists of Kyrgyzstan, Mongolia and Pakistan. In China and Turkmenistan, the Pallas’s cat is listed as Endangered. The species is listed as Extinct in Armenia and Azerbaijan. In Nepal, the first confirmed record of Pallas’s cat occurred after the publication of the current edition of the National Red List. Populations of Pallas’s cats may vary directly with their prey base and appear to be most numerous where pikas and voles are abundant. Generally, the Pallas’s cat is considered to be widespread but is not common across its range and has a fragmented distribution. The largest populations of Pallas’s cats are believed to exist in Mongolia. There are only few known density estimates: for instance in optimal steppe grassland of Central Mongolia, the population density was estimated from radio-telemetry to be around 4–8 individuals per 100 km². In the Russian Trans-Baikal Krai and in the Republic of Altai, densities were estimated from snow tracking at 17.6–19.5 individuals per 100 km² and up to 19.6 individuals per 100 km², respectively. In the Daurian steppe, Russia, one project captured 12 adult Pallas’s cats in a 16 km² study area, which equals a density of 75 individuals per 100 km². Low densities of Pallas’s cat are thought to be due to habitat specialisation and reliance on other species’ burrows and rock structures, prey availability and interspecific predation and signifies that large areas can be needed to conserve viable populations.

The Pallas’s cat is found from Iran throughout Central Asia. It primarily inhabits the steppe grassland regions of Mongolia, China and the Tibetan Plateau. At the south-western end of its range, the Pallas’s cat is found in the Zagros and Alborz mountain ranges in Iran. In Afghanistan and Pakistan, it occurs in the Hindu-Kish-Hindu Raj mountain ranges, with some areas considered as suitable for Pallas’s cat not being surveyed recently. The last confirmed records in Armenia and Azerbaijan date back to the 1920s despite recent camera trapping efforts for detecting Persian leopard (Panthera pardus tulliana) in those areas. There are no recent confirmed records either from Turkmenistan, Uzbekistan and Tajikistan. In Kazakhstan, recent records come from the central and eastern parts including the South Altai and parts of the Kazakhstan highlands. In Kyrgyzstan, confirmed records originate mostly as bycatch from studies on snow leopards at higher altitudes. The Pallas’s cat is considered to have historically occurred over the great majority of the country. Its current distribution in Mongolia is not well known. In Russia, the Pallas’s cat is known to occur in the Republic of Altai, Republic of Tuva, Republic of Buryatia, Krasnoyarsk Krai and Trans-Baikal Krai. China contains about half of the global estimated distribution range. Recent records were mostly gathered in the north-west and west of China with some also from central China. In the Himalayas outside China, confirmed records have so far been few and appear to be isolated: In India, the species was recorded in the Trans-Himalayan landscapes of Ladakh, Sikkim and Uttarakhand. The first record from Nepal is from 2012 in the Annapurna Conservation Area. The only camera trap pictures from Bhutan were taken in two snow leopard studies, both in 2012. Since then, national tiger and snow leopard surveys did not generate any further records from Bhutan.

The population in Central Asia (Kazakhstan, Kyrgyzstan, Mongolia and Russia) is estimated at 49,000–98,000 individuals based on the estimated Extent of Occurrence and the density estimate of 4–8 individuals per 100 km².

Pallas’s cat is a solitary animal that is primarily crepuscular but can be active at any time of the day or night. For shelter it uses caves, rock crevices or abandoned burrows of other animals such as of marmots, foxes and badgers. Such shelter is thought to be a critical habitat feature for Pallas’s cats as they are often predated by sympatric predators. Such shelters are also essential as birthing dens and for raising young. When Pallas’s cat feels threatened and no shelter is available, rather than run, it remains perfectly still relying on its camouflage for protection. The home ranges of the Pallas’s cat can be very large considering its small body size, with home ranges of over 100 km² for males in some regions. In Russia, home ranges of three radio-tracked Pallas’s cats varied between 5–30 km². In a study in Mongolia, home ranges of males were 4–5 times larger than female home ranges. Male home ranges measured 20.9–207 km² and female ones 7.4–125.5 km². Home ranges of males generally overlap with those of several females and can also overlap with other male ranges.

Reproduction in Pallas's cats is highly seasonal and photoperiod-dependent. Females show elevated faecal estrogen concentrations for 3-4 months of the year during late winter/early spring. Males have a similar seasonal peak that precedes that of females, presumably to ensure maximal sperm production during the breeding season. Oestrus lasts for up to 5 days, during which time females are followed by males, probably guarding the reproductively active female from other potential mates. Most births occur between April and May, with a gestation time of 66–75 days and litters average 3–4 kittens, but may range in size from 2–8 kittens. Juveniles disperse at an age of approximately 4–5 months. Kitten mortality in the wild is estimated at about 68% before dispersal. Females reach sexual maturity within a year, and can breed in their first season after dispersal.  

The Pallas’s cat is included in Appendix II of CITES and is protected in Afghanistan, Bhutan, China, India, Iran, Kazakhstan, Kyrgyzstan, Nepal, Pakistan, Russia, Turkmenistan and Uzbekistan. However, in several areas, protection only exists on paper but is not enforced. In Tajikistan, its status is unclear, and in Mongolia it is not protected and hunting is allowed the whole year round. Hunting licenses can be purchased to export trophies. Despite its protected status in Russia, Kazakhstan, Kyrgyzstan, Uzbekistan and China, there are legal provisions regarding capture, hunting and trade of Pallas’s cats following strict regional permitting systems. However, such permits are mostly issued in the context of conservation. In Afghanistan, the Pallas’s cat is legally protected since 2009 and hunting and trade is prohibited within the country. Further measures are needed to improve law enforcement in order to limit illegal hunting and trading of Pallas’s cats. Training for wildlife rangers could help to reduce poaching.

There have been very few studies conducted about the Pallas’s cat. Recent and ongoing studies from Mongolia and Russia have increased the knowledge base. This includes insight in its ecology and current threats from numerous radio-collared Pallas’s cats in Mongolia. Research has highlighted the importance of improving protection within and outside of protected areas. Despite 12% of the Pallas’s cat’s distribution in Mongolia lying within protected areas, illegal hunting is still frequent in these areas and Pallas’s cat's large home range sizes may result in the species being difficult to protect within reserves. Protection of Pallas’s cats within reserves in Russia has increased and approximately 13% of the species’ range in Russia lies now within protected areas. The establishment of monitoring programmes, distribution surveys and further research is urgently needed to better understand its ecology, spatial requirements, occupancy, habitat and resource needs and to be able to assess the species' status more accurately. This will help to improve the management and conservation of the Pallas’s cat.

Since 2012, Pallas’s Cat Working Group (PCWG) exists as a network consisting of around 30 members from range countries as well as international experts. PCWG aims to enhance the knowledge and conservation of the Pallas's cat. In 2016, the Pallas’s cat International Conservation Alliance (PICA) was founded. PICA is a collaboration between the Royal Zoological Society of Scotland, Nordens Ark Zoo of Sweden and the Snow Leopard Trust, funded by Fondation Segré. PICA aims to increase the knowledge on Pallas’s cat distribution and suitable survey techniques, on Pallas’s cat basic ecology, improve awareness and communication, and develop a Conservation Action Plan. A first range-wide Conservation Strategy was developed together with PCWG and published as part of the Cat News Special Issue 13.