Located to the west of Administration Area, this area is a complex of halls in the styles of siheyuan, serving as the residence area of the Empress Dowager Cixi and Emperor Guangxu. The main buildings in this area are Hall of Jade Billows, Garden of Virtue and Harmony and Hall of Joyful Longevity.

Taking Clear Ripples Garden as its predecessor, Hall of Jade Billows is the residence of Emperor Guangxu. After the failure of the Reform Movement, Emperor Guangxu was house arrested here for 10 years.

To the north of the Hall of Jade Billows is Garden of Virtue and Harmony. Made up of the Theatre Building and Hall of Nurtured Joy, it is the place where Empress Dowager Cixi used to watch performance.

Walking out of the Garden of Virtue and Harmony, one reaches the Hall of Joyful Longevity. It is the residence of Empress Dowager Cixi.