The Palace of the Eternal Dragon was a palace located on Zakuul. During the war against the Alliance, Empress Vaylin decided to throw a party in the palace to celebrate her glory, but the party was interrupted when The Outlander (with help of Theron Shan and Lana Beniko) infiltrated the party.
It was later destroyed when Vaylin ordered the Eternal Fleet to open fire on the palace in a failed attempt to kill the Alliance Commander and her brother Arcann. The result was devastating, with her enemies and brother escaping, many Zakuulans killed, and heavy damage to the area, Vaylin went from feared to hated in less than a day. She lost the respect of Zakuul and its people, but went on to focus on removing a conditioning her father Valkorion placed on her, more obsessed with destroying the Outlander than her role as Empress.