The article examines the creative path of one of the outstanding master, film director, artist and animator Masud Panahi, against the background of the history and traditions of Azerbaijani animation. The improvement of Azerbaijani national animation using the method of hand-drawn animation and the formation of a new leading line in this field are associated with the name of Masud Panahi. After receiving higher education at the All-Union State Institute of Cinematography in Moscow, he returned to Baku and successfully organized the training of personnel in the field of animation at the Azerbaijanfilm Studio after Jafar Jabbarly, sending them to foreign studios for training and exchange of experience. With the emigration of Masud Panahi abroad in the end of 1970s, the school and traditions he created were preserved for some time in Azerbaijani cinema, but the past years have pushed this content and approach into the background. The article presents a comparative analysis of new challenges in animation cinema, starting from the 1980s, with the work of Masud Panahi and the philosophy of the moment of benefit. The new films he shot in Berlin studios during his stay in Germany further enriched his creative potential. The signing of a contract for a new film in 2024 with the support of the Cinema Agency of the Republic of Azerbaijan is a clear example of Masoud Panahi’s continued contribution to the development of modern Azerbaijani animation.