The palace was built in ancient times when Shendu ruled over China, but fell into ruin after he was turned to stone by Lo Pei. However, after his defeat, Shendu vowed that he would return and restore the palace prior to summoning an army of Dragons that would avenge Shendu upon the descendants of his rebellious subjects by annihilating China. In Day of the Dragon he succeeded after being reanimated by the power of the Talismans, and prepared to unleash his dragon minions upon the world. Fortunately, he was thwarted by the efforts of Jackie Chan and his niece Jade, who returned him to stone form and then blasted him with the Dragon Talisman, destroying his physical form. No longer supported by his power, his palace crumbled back into dust, from which Valmont and the Enforcers recovered the