The palace building, with its grand and elegant Javanese architecture, lies in the centre of the city. It was founded by Pangeran Mangkubumi in 1755. The Prince was then called Sri Sultan Hamengku Buwono 1. He chose the right place for the site of the building, right between Winongo and Code river, a swamp area that dried up then.

The Palace building stretches from north to south. The front yard of the palace is called alun-alun Utara (North Square) and the back yard called alun-alun Selatan (South Square).The design of the building shows that the palace, the obelisk (The Tugu, the column), and Mount Merapi lie in one line. It is believed that the axis is sacred.

In the olden time. Sri Sultan used to concentrate his mind along this axis before leading a meeting or giving orders to his people. Each part of the building has its own name. The palace meeting hall is called Pagelaran. It is the place where formal meeting of the Palace officials are held. Manguntur Tangkil Hall is the place where the Sultan has his seat. This hall lies in the Siti Hinggil. Siti means ground and Hinggil means high. It is named so because the place where it was built is higher than any other ground around it. It was once a tiny island on the swamp.

The front gate is called Danapratopo. It is guarded by two giant statues called Gupala. One is called Cingkorobolo and the other is Boloupoto. The two statues are supposed to protect the palace from any harm or evil. The main part of the building is called Purworetno, there are two storeys buildings called Panti Sumbaga. This building is the Sultan's private library. The building where the Sultan live is called Gedong Kuning.

The visitor of the palace can enjoy the Atmosphere of the Kraton as it was some centuries ago. Wedding ceremonies, palace meeting which is often held with puppet shows to create such an atmosphere. Many sets of gamelan music instruments, antiques, and heirlooms make the palace of Yogyakarta the most interesting tourist attractions in Yogyakarta. The palace of NgayogyokartoHadiningrat is now the dwelling place of Sultan Hamengku Buwono X and the family.