Built at the junction of Phochhu and Mochhu by Zhabdrung Ngawang Namgyal, it stands as the symbol for a unified Bhutan. It was built in 1637 to serve as the religious and administrative seat of the region.

Presently it serves as the winter residence for the central monk body and administration center for the district. Although the dzong went through massive destruction because of GLOF it has been fully restored to its original splendor.

The beautiful dzong is considered the most beautiful in the country and the woodworks seen here are of the highest standards. The dzong has a Kuenray, chamber, where the Kings of Bhutan are crowned. In 1907, Gongsar Ugyen Wangchuck was crowned as the first king of Bhutan in Punakha Dzong. The most sacred relics of the Southern Drukpa Kagyu School including the Rangjung Kasarpani, and the sacred remains of Zhabdrung Ngawang Namgyal and Terton Padma Lingpa are in this dzong.

Starting from the cantilever bridge over Mochhu to the lake behind the dzong and the dzong surroundings, everything is awe-inspiring.

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