Palace of Aurag, an ancient city ruin beneath the earth surface, is situated north of Rashaan Dersnii Ukhaa and south from the “Avarga toson” spa-resort in Delgerkhaan Soum, Khentii province. It is supposed that the name of the city ruin was originally “Aurag” and later changed into “Avarga”. Researchers claim the meaning of the word “aurag” is not huge, enormous or great, but cave or warehouse.

During the 13th century, there was a need of warehouse to keep food and articles of tribute from the countries under control of the Mongol Empire. Therefore, they established this city where the most of the royal courts were built in, and named it “Aurag”. This place is supposed to be the city that served as a capital of the Mongol empire for over 30 years since 1189. As a result of the excavation, it became obvious that the city had four distinctive parts covering 4.5 square km area. There was a district of farming on the eastern part of the city and worship temple placed on the special porch surrounded by double fortress on the northern part from the central area. The temple foundation was 180 square meter and the number of columns on it was over 40. Polished 6-sided stone column was found in the front section of the porch. Particular wall fortresses were placed in row east to west on the western part of the city.

Building remains of 13 fortresses each with 3-4 small buildings were revealed. After excavation, many finds were found including a potsherd, a plough-share, artifacts of iron, bone and mud, iron smelting blast furnace, cast iron, and a hone stone.