The fortress stands majestically on the little island formed by the two rivers. The site is said to have been prophesized by Guru Rinpoche..on the front edge of the hill that looks like an elephants trunk, a man Namgyel will come and build a fortress

The Punakha Dzong (Fortress), also known as Pungthang Dechen Phodrang (The Palace of Great Bliss) was built in 1637 by Zhabdrung Ngawang Namgyel. The First King of Bhutan, Sir Ugyen Wangchuck was crowned in this fortress on 17th December 1907.

The MachenLhakhang, a temple inside the fortress preserves the relic of Zhabdrung who died in 1651 during retreat in this temple.The kings, Je Khenpo and two care taker lamas are the only persons allowed to enter in this temple.
The first session of the kingdoms National Assembly was held in this fortress in 1955. Today, it is the winter residence of the central monk body, presided by the Je Khenpo. The coronation of the King and the consecration of the Je Khenpo still take place in this fortress.

The fortress was damaged by fire six times, once each by flood and an earthquake. In 1994, the fortress was severely damaged by glacial outburst. It was restored to its original grandeur by 2003.