The flame haired royal is said to have enjoyed the young model's company while attending a barbecue thrown at his cousin Princess Beatrice's home recently and ''spent the whole afternoon'' playfully chatting with her.
A source told Britain's LOOK magazine: ''Harry made a beeline for Cara as soon as he spotted her. Everywhere you looked there were models, actors and aristocrats but Harry and Cara didn't seem to notice. They spent the whole afternoon only talking to each other.
''The theme for the [party] was Hollywood Westerns. Cara kept stealing Harry's cowboy hat and teasing him about his boots. He seemed to love it and obviously thought she was hilarious.''
After hitting it off at the bash, the 28-year-old prince has reportedly seen Cara, 20, several more times and presented her with a cheeky gift during their last meeting.
The source explained: ''It was a silly thing - an in-flight magazine, which is a running joke between them to prove who has the most jet set lifestyle.''
Harry - who is thought to have split from socialite Cressida Bonas - was previously linked to the blonde beauty when they were spotted together at an after-party for 'The Dark Knight Rises' premiere in London last year.
Cara recently dated singer Jake Bugg, but it's thought the young couple called off their romance in April.