Shey Monastery and Shey Palace are located on Shey hillock in the southern part of Leh on the Leh to Manali road. In olden days, Shey served as the summer capital of Ladakh. The palace was built in 1655 and is almost in ruins at present. This was built by Deldan Namgyal also called Lhachen Palgyigon. Shakyamuni Buddha statue made of giant copper with gilded gold is the noteworthy feature of this monastery. This statue is the second largest of its kind in this region. Nearly five kilograms of gold are used for gilding the copper plates.

On the upper floor of this gompa, you can find many beautiful wall paintings and there is a big library in the lower floor with many preserved manuscripts. There is another small shrine located closer to this place that is also worth visiting.