This paper model is Aerith, a character who lives in Traverse Town in Kingdom Hearts and Kingdom Hearts: Chain of Memories, and in Hollow Bastion/Radiant Garden in Kingdom Hearts II. The papercraft was created by Orel67. Like many of Sora's allies, she originates from the Final Fantasy series.
Aerith, as an ally of Leon and Yuffie, is one of the three core Final Fantasy characters of the series, and takes an active support role with them in the defense of Hollow Bastion in Kingdom Hearts II. She also plays a part in Cloud's story, though does not directly assist him as she does her other allies.
In Kingdom Hearts, Aerith bears a strong resemblance to her original appearance in Final Fantasy VII, though she lacks her short, maroon overcoat and her thick, metal wristbands are replaced with what looks like coiled wire. She also has a loose, lilac belt around her waist with black string tied into a bow on it that was not present in her original design. Aerith wears a pink dress with magenta lining and buttons going down the front, all of which are buttoned except for the last two. She has a black string tied in the same fashion as the one on her belt around her neck like a necklace.
Her eyes are green and her hair is brown. Aerith's hair is long and styled into a braid down her back, with curls on either side of her face. Her bangs frame her face in a very similar manner to Sephiroth's own bangs. She also wears brown boots.
In Kingdom Hearts II, Aerith's look changes, now somewhat resembling the way she looked in Crisis Core -Final Fantasy VII-, albeit with several differences. Her eyes and ribbon are much brighter, while her boots are paler. Aerith now wears a carmine pink and white top held up by a string that wraps around her neck. Underneath this top, Aerith wears a pink dress with a horizontal white stripe near the bottom. She wears yet another dress underneath the first one, this dress being white and slightly longer than the first.
Aerith's name were never spoken in-game even though her name is written in the script. This is due to uncertainty during the game's development whether her name would be translated as "Aerith", or as the original translation "Aeris" that appeared in Final Fantasy VII. The name "Aerith" would later be used in related releases of Final Fantasy VII, making the original "Aeris" considered to be a mistranslated name.
Aerith, along with Cloud, Tifa, Yuffie, Cid, and Leon were originally set to appear in Kingdom Hearts Birth by Sleep. But in the final release they were removed from the game because, according to Nomura, there were too many plot lines already, and it would have gotten confusing.
Aerith, unlike most other Final Fantasy characters, has not yet been either a combat ally or opponent for Sora, or seen to engage directly in battle against an opponent, and so her combat abilities, if any, are unknown. Aerith does seem able to cast magic, however, as she casts a Curaga spell on Yuffie during the invasion of Hollow Bastion, and also upgrades Sora's Cure spell. This seems roughly in-line with her Limit breaks, centered around healing, in Final Fantasy VII. Despite never physically being seen in battle, she is implied at one point to have held off waves of Heartless spawned by the MCP, hinting that she does possess combat abilities.
She carries no visible weapons at any time, unlike most other Final Fantasy characters, but it would likely be a quarterstaff as per her original incarnation. [Source: khwiki]