Moon Palace, also called Guanghan Palace, refers to the Palace on the moon. Legend goes that it is inhabited by the goddess of the moon-Chang'e, the Jade Rabbit and the woodcutter Wu Gang.

As is known to all, Chang'e stole the Pill of Immortality and flew to the moon and then she became the Chinese goddess of the moon.

There were many versions about the background of the goddess's best friend-the Jade Rabbit. It was widely believed that it was sent to the Palace to alleviate Chang'e's sorrowful solitude. It was busy all day long, pestling medicinal materials in efforts to concoct a pill that could help the goddess return to Earth. However, it never succeed.

Originally, Wu Gang was a woodman who lived on Earth. It was said that he offended the Almighty and was sent to the Palace. He was told that once he fell the sweet-scented osmanthus tree, he would attain magic powers. Therefore, Day after day, Wu Gang wielded his ax, but the tree had magical power and the cleaving scars disappeared seconds after each stroke. Wu Gang continued his labors day after day. But years after years, the tree still grew verdantly and heavily sheltered the palace beside.