It was part of larger complex called the "Green Palace", an imperial residence of the eighth Jebtsundamba Khutughtu, who was later proclaimed Bogd Khan, or ruler of Mongolia.

The old city of Ikh Khüree, once it was set up as a permanent capital, had a number of palaces and noble residences in an area called Öndgiin sürgiin nutag.

The Bogd Khan had four main imperial residences, which were located between the Middle (Dund gol) and Tuul rivers.

The summer palace was called Erdmiin dalai buyan chuulgan süm or Bogd khaanii serüün ord.

[2] Built between 1893 and 1903, the complex is one of the few Mongolian historical attractions which have neither been destroyed by the Soviets or the Communist forces.