The capital of Palau is Ngerulmud. It is located on the island of Babeldaob, which is the largest island in Palau. Ngerulmud became the capital of Palau in 2006, when it replaced Koror as the capital. The decision to move the capital to Ngerulmud was made to decentralize the government from Koror, which was becoming overcrowded and lacked space for expansion.

Ngerulmud is a small town with a population of approximately 300 people. It is located inland, surrounded by dense jungle and hills. The town was built from scratch to become the new capital, and construction began in 2002. The government invested heavily in building the infrastructure, including roads, bridges, and government buildings.

One of the most notable buildings in Ngerulmud is the Capitol Building, which houses the Palauan government. The building is designed in a modern architectural style and features a dome-shaped roof. The Capitol Building is surrounded by a large reflecting pool, which is meant to symbolize the nation's connection to water.

Ngerulmud is not a major tourist destination, but visitors can take guided tours of the Capitol Building and other government buildings. The town is also surrounded by beautiful natural scenery, including lush jungle and stunning waterfalls. Visitors can also explore nearby islands, including the famous Rock Islands, which are known for their crystal-clear waters and abundant marine life.