Situated on the banks of the River Indus, on the outskirts of the city, Stok Palace is a magnificent, three-storey structure. Still the summer home of the royal family of Ladakh, about 12 of its 80 rooms remain functional today. The Royal Palace Museum is a must-visit as it displays items like imperial thangka paintings, the king's crown, dresses, coins, perak jewellery pieces adorned with turquoise and lapis lazuli and the queen's ancient turquoise and gold yub-jhur (turquoise-encrusted headpiece) and many religious objects.

There is also a 16th-century Afghan sword that is bent into a knot. There is a cafe within the palace grounds that offers pleasing views of the landscape. A short distance away from the palace is the monastery that was established by Lama Lhawang Lotus. Every year, on the 9th and 10th days of the first month of the Tibetan calendar, ritual masked dances are performed.

The palace was built in 1820 by King Tsepal Namgyal, the ruler of Ladakh, whose palace was invaded by Dogra forces eventually. When Leh Palace was invaded, the king and his family moved to the Stok Palace.