This historical palace is one hour walk from downtown Gorkha. It is intricately architect on the top of the hill above the township. On the palace lies a famous cave sheltering the statue of Gorakhnath (sage).   It is believed that the name of Gorkha is derived from this sage. Later this blessings inspired the then King Prithvi Narayan Shah for unification of greater Nepal. From the top of the hill above Gorkha palace, the views of Mount Manaslu, Himalchuli and several other mountain peaks of Himalayan range are seen spectacular.