Saurashtra took a crucial 73-run first inning lead after restricting Karnataka to 396 in reply to their 469 at stumps on the third day of the five-day encounter.
Overnight batsmen Robin Uthappa and K L Rahul started on a positive note today, adding another 50 runs before left-arm seamer Jaydev Unadkat dismissed aggressive Uthappa, who made 60 off 66 balls with 11 fours.
Off-spinner Kamlesh Makwana then struck twice, dismissing K R Kapoor (2) and in form C Gautam (5) to reduce the visitors to 112 for three.
However, Pandey then took over and made a fine 177 but it was not enough for Karnataka to overhaul Saurashtra's first innings score.
Pandey's 177 came off 228 balls with the help of 15 fours and three sixes during his 312 minutes stay at the crease and was the last man to be dismissed in Karnataka's first innings.
For Saurashtra, spin trio of Vishal Joshi, Dharmendra Jadeja and Kamlesh Makawana scalped three wickets apiece.
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Brief Scores:
Saurashtra: 469 all out in 165.3 overs
Karnataka: 396 all out in 102.2 overs (Manish Pandey 177, Robin Uthappa 60, K L Rahul 55, Kamlesh Makwana 3-91, Vishal Joshi 3-103 and Dharmendra Jadeja 3-122.)