The Dhenkanal Palace, in the centre of the old town, was the seat of the rulers of the Dhenkanal princely state for some two centuries before the kingdom's accession to India in 1948. The two-storey palace combines European arched verandas with Odia architectural details; the front courtyard is dominated by a banyan tree said to be older than the building itself.
Part of the palace has been converted by the descendants of the royal family into a small heritage hotel. The rest is occupied by the family. Day visitors are usually welcome at the public rooms; tea on the veranda is one of the more pleasant breaks in town.