In 1382, the Naxi chieftain pledged allegiance to the Ming court. Emperor Zhu Yuanzhang granted him the simplified surname Mu, shearing two strokes from his own imperial name. At the foot of Lion Hill in Dayan Town, the Mu family established an administrative palace. For twenty-two generations spanning over four hundred and seventy years, this clan ruled the southwestern frontier from this seat.

Traditional Central Plains palaces face south. The Mu Mansion faces east, aligning with Naxi sun worship and the rising of the eastern wood element. The Jade Belt River flows around three sides of the estate, its waters murmuring beneath stone bridges. Inside, the three-hundred-and-sixty-nine-meter central axis guides visitors through three distinct sections. The front holds the ceremonial gates. The middle houses the Council Hall and the Ten Thousand Volumes Tower, which once stored ancient Dongba manuscripts and Tibetan scriptures. The rear climbs the slopes of Lion Hill toward the Sanqing Temple.

Human encounters shaped these halls. In 1619, Chieftain Mu Tai composed "Envoys of the Two Passes," writing of imperial decrees arriving near the red sun. Twenty years later, in 1639, Chieftain Mu Zeng welcomed the geographer Xu Xiake. The two men sat in the courtyard, sharing the aroma of roasted tea and ink while discussing philosophy. Xu Xiake described the palace as possessing a beauty comparable to that of kings.

Destruction repeatedly visited the mansion. Rebel forces under Liu Wenxiu plundered its treasures in 1647. During the 1860 Yunnan Muslim Rebellion, the crackle of consuming flames reduced the grand halls to ash. The Cultural Revolution claimed the remaining structures, including the white marble Loyalty and Righteousness Archway.

The current structure rose from the ruins of the devastating 1996 Lijiang earthquake. Stonecutters sourced cold white marble from the Daju quarries, carefully testing the pillars to ensure they could support the heavy stone beams. Completed in 1999, the reconstructed mansion now serves as the Lijiang Ancient City Museum, preserving the memory of frontier integration.