Its eastern borders were demarcated after the British conquest of Upper Burma and the Shan States.

[3][4][5] The palace's design was inspired by Sao Kawng Kiao Intaleng's attendance at the Delhi Durbar in 1903.

[6] Despite local opposition, the Burmese military demolished the palace on 9 November 1991, and built hotels in its place, in preparation to host a national tourism campaign called Visit Myanmar Year.

[6] In 2019, the group petitioned the Burmese national government to return the land to the local community.

[5][1] In the aftermath of the 2021 Myanmar coup d'état, the State Administration Council announced it would build a replica of Kengtung Palace on the grounds of an old skating rink near Naungtung Lake in Kengtung.