Punakha was the capital of Bhutan and the seat of government until 1955 when the capital was moved to Thimphu. The city is at the confluence of two rivers – Pho Chhu and Mo Chhu.

Punakha Dzong is one of the most majestic structures in the country and is the second largest and second oldest dzong in Bhutan. Punakha Dzong or The Palace of Great Happiness was built in 1637 AD. Majestically standing on an island between two rivers Pho Chhu and Mo Chhu, the dzong is joined to the mainland by an arched wooden bridge and contains many precious relics from the days when successive kings reigned the kingdom from this valley.

Chimi Lakhang is one of the most scenic monasteries in Bhutan. Set amidst the paddy fields, the monastery is built with ancient Thai-themed architecture with paintings and carvings of phalluses on all walls. The monastery is also called as Fertility Temple and is visited by several childless couples from in and around Punakha District.