The new and distinct cultivar of ornamental cultivar of bee balm plant named Monarda ‘Cotton Candy’ is a short, winter-hardy, compact, numerous-stemmed well-branched, densely clumping habit with dark green foliage numerous early-flowering lilac-pink-colored flowers creating excellent flower coverage over a prolonged period of time. ‘Cotton Candy’ has strong foliar resistance to powdery mildew.