Xi Wangmu built a palace with great golden ramparts next to a jeweled lake atop Mount Kunlun, over which she presides and caters to the many immortal gods and creatures who visit her. There she guards the peaches of immortality, from which she distills her elixir of immortality. She serves at a banquet of these peaches in the palace every 6,000 years.

The palace is a center for communion between the deities and immortal creatures, almost a portal between the different mythical realms and the mortal plane. It is here that the mortal archer Houyi procured the elixir of immortality, and where Sun Wukong once stole all of the peaches from the banquet and gained his own divinity.