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The Enchanted Palace is the center of the Weasel Empire, and is where the Weasel King dwells. Problem Sleuth landed here after parachuting out of the sky, and it was here that he was asked to solve the plight of the four kingdoms.
Later, the Weasel King looked from the Palace window, with a Pryglass, to check on the progress of the volcanic Mt. St. Lardass. In the epilogue, the Weasel King and Madame Murel were together in the palace, where they looked through the Pryglass to see a large orange bow on the fan on the sleazy brothel.