Legend tells how Zowe Palep, the architect, had a vision in a dream after the Zhabdrung ordered him to sleep under a small structure which contained a statue of the Buddha, known as Dzong Chug "small dzong". In his dream, prompted by the psychic powers of the Zhabdrung, he had a clear vision of a palace for Guru Rinpoche. The vision was imprinted on the architect's mind, enabling him to conceive the plan for the dzong without putting the vision on paper and to build it.[1] On the basis of the dream vision of the architect, the building of the dzong was started in 1637 and completed in 1638, at the place where the Dzong Chug had existed. During this period, Ngawang Namgyal became the first leader of a unified Bhutan, following his concerted efforts to unify the country into one unit.

The dzong was consecrated in the name of Pungthang Dechen Phodrang. In 1639, a commemorative chapel was erected to house the arms seized from the Tibetans who were defeated by the Bhutanese on this spot. The Zhabdrung also set up a monastic order with 600 monks (brought from Cheri Gompa of upper Thimphu valley) and he lived here till his death.

The spire at the top of the utse (the dzong's central tower or the main tower[2]) was added in 1676 by Gyaltsen Tenzin Rabgye–the abbot of the dzong. Further additions were made during the period 1744 to 1763, when Sherab Wangchuk was the ruler. A large thangka known as chenma (great) thoundral of the Zhabdrung was donated to the Dzong by the Desi (ruler). This thangka is displayed during the tshechu held once a year here. The 7th Dalai Lama donated the brass roof for the dzong.[1]

 King Ugyen Wangchuck, receiving the order of the Knight Commander of the Order of the British Empire at Punakha Dzong

The House of Wangchuck currently rules the country. This monarchy was established in 1907. The same year, Punakha Dzong was the site of the coronation of Sir Ugyen Wangchuck as the first Druk Gyalpo. At that time, Punakha was the capital of Bhutan. Three years later, a treaty was signed at Punakha whereby the British agreed not to interfere in Bhutanese internal affairs and Bhutan allowed Britain to direct its foreign affairs.[3]

From 1744 to 1763, the dzong was enlarged substantially during the rule of the 13th desi, when Sherab Wangchuk was the chief abbot of Bhutan.[4] Several fires between 1750 and 1849 caused damages to the Dzong. In the 1897 earthquake, the dzong was severely damaged and also suffered numerous fires. In 1986, the dzong was partially destroyed by fire[1]

Royal wedding

The wedding of the Druk Gyalpo, Jigme Khesar Namgyel Wangchuck, and his fiancée, Jetsun Pema, was held at the Punakha Dzong on 13 October 2011.[5]