Kanbawzathadi Palace was constructed by King Bayinnaung. The king is known to be the founder of the second Myanmar Empire. In 1556, when king constructed a new palace towards the south of the Shwemawdaw Pagoda, he gave the palace the name Kanbawzathadi. The palace comprised of seventy six apartments and halls. In 1599, the palace was burnt.
The palace site was burrowed by the Department of Archaeology in the 1993. During the excavations, the brick foundations and plinths were found. The other findings were teak pillars and 1800 lime-stone Buddha images. Some teak pillars also had inscriptions. The ruins that can be visited include city wall that has twenty gates.
The Great Audience Hall (the Lion Throne Room) and Bee Throne Hall were constructed again. This reconstructed 16th century palace of Hantharwaddy is counted amongst one of the prime tourist attractions of Bago.