Palace of Aurag, an ancient city ruin beneath the surface of the earth, is situated north of Rashaan Dersnii Ukhaa and south from the “Avarga toson” spa-resort in Delgerkhaan Soum, Khentii Aimag. 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 had been serving as a capital of the empire and Mongol tribes for over 30 years since 1189. As a result of the excavation, it became clear that the city had four distinctive parts covering 4.5 sq km area. There was a district of farming on the eastern part of the city and temple worship placed on the special porch surrounded by double fortress on the northern part from the central area. The temple foundation was 180 sq m 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 inside were revealed here. After digging 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.