The seven-month old panda paid his first visit to the grasslands area in a ceremony attended by the Chinese Ambassador to Spain Zhu Bangzao and US Ambassador James Costos.
Accompanied by his mother, the 15kg (33lb) youngster clambered about on a special climbing frame and took in the spring sunshine to the delight of onlookers.
Xing Bao — the name means Treasure Star — is the fourth panda to be born at the Madrid zoo.
Video courtesy Madrid Zoo Aquarium of Madrid
The cub's mother Hua Zui Ba first gave birth in 2010 to twins Po and De De, both of which were taken in May to China's Chengdu province to be released eventually to their natural habitat. Another panda, Chulin, was born in the zoo in 1982.
There are currently an estimated 1,600 pandas living in the wild globally. Some 376 live in captivity with 47 of those outside China. Madrid's zoo is home to three of the 12 animals living in Europe.