The capital city of Palau is Ngerulmud. Located on the island of Babeldaob, Ngerulmud serves as the seat of government for this Pacific island nation. It is notably different from Koror, the former capital and the most populous city in Palau, which is known for its tourism and commercial activities. Ngerulmud was officially designated the capital in 2006 due to its central location and to promote development in other parts of the country. The city features unique architecture, including government buildings and traditional Palauan structures, while also reflecting Palau's cultural heritage.