The secluded wooded compound of the Ugyen Pelri Palace was built by the Paro penlop, Tshering Penjor, in the early 1900s and is now a residence of the queen mother, thus closed to the public. It is designed after Guru Rinpoche's celestial paradise, Zangto Pelri, and is a beautiful example of Bhutanese architecture. For views of the palace from above, head to the dzong.
On the road beside Ugyen Pelri Palace are five square chortens that were built in memory of the first king of Bhutan, Ugyen Wangchuck.