The Valley of Peace (also referred to simply as the Valley) is a large valley surrounded by a barrier of tall mountains that help protect the land from outside invaders (thus the included name of "peace"). It serves as the main setting of the Kung Fu Panda franchise and the home of many of the franchise's characters, including Po, Shifu, and the Furious Five. The Valley's other inhabitants consist primarily of rabbits, pigs, geese, and ducks, although sheep and goats have also been seen at times.
- The valley's landscape was inspired by the Li River Valley and Yellow Mountain regions of China.
- Although there are 1,478 unique villagers in the Valley of Peace, there were 2,306 spectators in the Jade Palace's arena during the Dragon Warrior ceremony in the first film.