Like many other palaces, the Jade Palace and its grounds are a complex that serve as a grand residence for kung fu masters and students. Many masters have lived and trained in the palace since its construction, presumably under Oogway's instruction. The palace currently serves as the home of its master and owner, Shifu, as well as Po the Dragon Warrior and the Furious Five.
The palace itself is the outside structure for the sacred Hall of Warriors, which contains all the artifacts of past masters, the Moon Pool, the Dragon Scroll, and the thousand scrolls of kung fu. The palace grounds contain an arena for public tournaments, a training hall with an outdoor training courtyard and student barracks, a bell tower, and Peach Tree Hill (the resting place of the revered Peach Tree of Heavenly Wisdom).