It lies on the eastern side of the Kuri Chhu and is perched on a spur at the end of a narrow valley. The Luntse Dzong was originally a temple built on the site where Ngagi Wangchuk meditated in 1551. The temple was known as Kurtoe Lhuntse Phodrang popularly known as Lhundub Rinchentse, the Dzong was built in 1654 by the Trongsa Penlop Chogyal Minjur Tempa. The dzong serves as the administrative and the religious centre of the district. The Dzong houses many sacred artifacts that was installed by the 4th Druk Desid Tenzin Rabgay. The bronze statue of Tshepame is the most sacred artefact in Lhuntse Dzong.