Situated on the northeastern corner of the city, this magnificent structure was once a royal residential building called the Prince Yong Mansion. Built by Emperor Kangxi, it was a gift to his fourth son, Prince Yong. In the 3rd Year of Emperor Yongzheng's imperial rule (AD 1725), the building served as a temporary imperial palace and was consequently renamed the Yonghe Palace. The architectural layout of the buildings display tapering from the south towards the north and with ascending heights, thus forming a spectacular "towering main hall with deep hidden annexes" layout, mixing the characteristics of the Han, Manchurian, Mongolian and Tibetan cultures. Yonghe Lamasery is a treasure of Han-Tibetan culture.

Yonghegong Lamasery