Ugyen Pelri Palace is situated below the Rinpung Dzong on a small piece of land beside Pa chhu. Ugyen Pelri Thang Palace was built by Paro Penlop (Governor) Tshering Penjor around 1930. It is concealed in the woods, enclosed by perimeter wall. This elegant building is modeled after Zangopelri, a celestial palace of Guru Rinpoche and functions as Royal residence in Paro. One can observe it from outside and visit the nearby attractions of the Five Chortens of Paro even though not allowed inside the palace.