Pantherlily is an Exceed that works for the kingdom of Edoras as the Magic Militia's First Division Commander of the Royal Army. He seems to have a grumpy disposition and detests noisy people. He first appears by demanding that Byro and the hyperactive Hughes quiet down. (Although Sugarboy noted that Pantherlily was in a nastier mood than usual).
Pantherlily has shown the ability that all Exceed have, Aera. He wields a huge sword and shows massive strengTogether with Akaoni and Majorina, are the three commanders of Bad End Kingdom. His appearance is that of a panther, hence the name "Pantherlily." A defining feature is his unique laugh of "Uruffufu."
At the end of the Edolas arc, Pantherlily is sent to Earthland as well as the rest of the Exceed. There he takes on a small 'chibi' form similar to that of Carla and Happy and takes the role of being Gajeel's cat, resulting in all three Fairy Tail dragon slayers having trademark talking cat companions.
While he is in his 'chibi' form most of the time, he can still transform into his humanoid form. He refrains from doing this too often however as it drains a lot of magical power from his body.