The Jade Palace is a large, elaborately designed, and sacred palace that overlooks the Valley of Peace on top of Jade Mountain and can be seen for hundreds of miles. It is known to be a symbol of justice, honor, and courage. It is one of the important aspects in the Kung Fu Panda franchise.
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).
History
Before Kung Fu Panda
Decades before the events of the first film, Shifu had discovered an infant snow leopard outside the palace doors. He took the child in, named him Tai Lung, and raised him as a son. One day, Tai Lung approached the dummy in the Training Hall, and in the process showed unusual talent in kung fu. Shifu spent years afterwards training Tai Lung, showing excessive pride and believing that Tai Lung was the destined Dragon Warrior. Indeed, the snow leopard was nothing short of a prodigy, but one master disapproved; Oogway observed Tai Lung's progress and was concerned when he saw the darkness that was growing in his heart, fed by both Tai Lung and Shifu's growing pride.
When Tai Lung was eventually presented to him, Oogway ultimately denied the leopard the Dragon Scroll. This, along with Shifu's reluctance to speak up on his behalf, caused Tai Lung's pride to turn to corruption and rage. He laid waste to the Valley of Peace before rushing back to the palace and crashing through the doors of the Hall of Warriors, with the intent to take the Dragon Scroll by force. Shifu attempted to deliver a kick to Tai Lung. However, Shifu still loved his adopted son, and hesitated at the last second; he paid dearly for his hesitation when Tai Lung shattered his hip and sent him flying back across the room. Fortunately, Oogway was able to stop Tai Lung himself, and the snow leopard was then sent to Chorh-Gom Prison for his crimes against the Valley of Peace.
This horrific incident left Shifu emotionally scarred. He continued to teach at the Jade Palace, but this time, with a stern and distant attitude toward his students. He also redesigned the Training Hall to feature the most deadly course ever built.
In Kung Fu Panda
Twenty years after Tai Lung was sent away to prison, Oogway had a vision that he would return and take revenge on the Valley. He informed Shifu of his vision, and it was decided that it was time for the Dragon Warrior to be chosen. Shifu also ordered a palace goose named Zeng to travel to Chorh-Gom Prison to make sure security is doubled. Soon after this, a tournament was held in the Palace Arena, in which the Furious Five would compete to decide which of them would be chosen by Oogway, with Oogway briefly informing Shifu that whomever he'd choose would bring peace both to the Valley and to Shifu himself.
Once the Five had each performed in the arena, Oogway prepared to make his decision. Just when it appeared that he was about to point at Tigress, a large panda named Po suddenly fell out of the sky and in front of Oogway's pointing finger. Oogway took this as a sign and chose Po as the Dragon Warrior, much to Shifu and the Five's shock.
The equally astonished Po was immediately brought up to the palace and placed in the Hall of Warriors, where he spent his time admiring the many artifacts until Shifu approached him. Having previously decided to get rid of the panda, Shifu began insulting Po in order to get him to quit, and eventually took him to the Training Hall, where Po humiliated himself in front of the Furious Five when he attempted to spar with the Adversary and failed spectacularly in the kung fu course.
That night at the student barracks, the Five made clear their own disregard for Po and, disheartened, Po spent the night at the Peach Tree Hill, devouring the peaches from the tree, until Oogway found him and gave him some encouraging advice. The next day, Shifu and the Five were surprised to find that Po had reached the Training Hall courtyard first, and reluctantly began training him. Still wishing to get rid of the panda, Shifu made Po's training tantamount to torture, but Po tenaciously refused to quit. While this frustrated Shifu, it caused the Furious Five (sans Tigress) to warm up to the panda.
In the evening, while Po was receiving acupuncture in the barracks, Shifu was meditating in the Training Hall, though he struggled to gain inner peace. He was soon interrupted when Zeng returned from his mission and gave the master terrible news; Tai Lung has escaped. Shifu rushed to Peach Tree Hill where Oogway was performing tai chi, and informed his friend of this. Oogway advised Shifu to believe in Po as the Dragon Warrior before ascending to the heavens in a cloud of peach blossoms.
Saddened by Oogway's passing, Shifu nevertheless met Po and the Five in the barracks kitchen, where he told them the news of Tai Lung's escape and Oogway's passing. Po panicked and attempted to flee the palace, but Shifu stopped him, and in the argument that followed, Shifu learned that not only did Po suffer from a crippling self-loathing, but that he himself had no idea as to how to make Po the Dragon Warrior.
Shifu spent the remainder of the night beneath the Peach Tree in deep thought, until he overheard Po performing kung fu in the distance. Initially thinking that the sounds were coming from the Training Hall, Shifu found the hall empty and instead found the panda in the kitchen, inadvertently showing a knack of kung fu while searching for food to gorge on. Seeing this, Shifu saw a way he could train Po and took him into the Wu Dan Mountains, where he successfully trained Po using food as motivation.
Days later, Po and Shifu returned to the Jade Palace just before Crane also returned carrying his paralyzed comrades; the Furious Five had left the palace to confront Tai Lung themselves, but were all beaten by his nerve attack. After Shifu freed the Five from paralysis, he decided that Po was ready to receive the Dragon Scroll. Once Shifu had retrieved the scroll, Po opened the scroll to find it blank. With nothing left to do, Shifu told Po and the Five to evacuate the Valley to insure the safety of the villagers, while he would confront Tai Lung in battle to the death.
Shifu waited outside the palace alone, until Tai Lung finally arrived and they battled. Tai Lung let out all of his rage as they battled, and Shifu was eventually defeated and almost killed until Po unexpectedly returned, holding the scroll, having discovered its symbolic meaning. The battlethat followed sent them both flying out of the palace and down into the village, and Tai Lung was eventually defeated by Po's Wuxi Finger Hold.
After being congratulated by the Five and the residents of the Valley, Po remembered that Shifu was injured back up at the palace, and rushed back up up the stairs to find Shifu still in the Hall of Warriors, injured but alive. After learning of Tai Lung's defeat, Shifu told Po that he had brought peace to the Valley and to him, as Oogway had foreseen. He and Po then meditated next to the Moon Pool for a minute before Po suggested getting something to eat, to which Shifu agreed.