At its simplest, texturing merely consists of applying a texture in your modeling program. When you export the model, the path to the texture and some options for it like filtering or repeat-method (see next pages) are saved into the egg file.
The texture paths can be either relative (as seen from the egg file) or absolute (full path). See Loading Models for more info about Panda's Filename Syntax. In most cases the relative path makes more sense.
Panda can load JPG, PNG, TIF, and a number of other file formats.
More advanced texturing methods are described in the following sections.