From the pages of history:
The village ‘Shey’ was the old capital of the upper Ladakh. The present structures or ruins are not the remains of old capital ‘Shey’ but of the new capital of Namgyal Dynasty. It was the 5th king of Ladakh, Sengge Namgyal (1616-1642), who built the Leh Palace (to read about Leh Palace click here). His son Deldan Namgyal, the 6th King of Ladakh, in the memory of his father built the Shey Palace and the Shrine in 1655. It was used as a summer palace by the royal families. However, in 1834 the royal families abandoned the Shey Palace and Leh Palace due to invasion of Ladakh by Dorga forces of General Zorawar Singh and moved to Stok Palace which locates about 13Km from Shey Palace. Presently the Palace is a historical monument and is maintained and managed by the Archeological Survey of India.