Penglai Pavilion perches on Danya Mountain in the northwest of Penglai urban area and was declared a key cultural relic under state protection, together with Penglai Water City, by the State Council in 1982. It covers 32,800 square meters. Penglai Pavilion is a group of buildings which is composed of several groups of different temples and palaces, attics and pavilions, such as Sanqing Palace, Lvzu Palace, Sugong Temple, Thean Hou Temple, Long Palace, Penglai Pagoda, Mituo Temple. All of these buildings are called Penglai Pavilion. Since the reign of Jiayu of the Song Dynasty, it had been extended and restored in all ages. The historical story of Qin Shi Huang visiting immortals for elixir and the fairy story of eight immortals crossing the sea give mystery to Penglai Pavilion, therefore, it is known as the Fairyland from ancient time.

Main building of Penglai Pavilion was built in the reign of Jiayu of the Song Dynasty (1061 A.D.) and it perched on the peak of Danya Mountain. The pagoda is 15 meters high and faces to south. It is a double-layer wooden construction. The corridor surrounded is the best place for tourists to overlook and enjoy the marvelous phenomenon of mirage. A plaque with the three bold and golden letters “Penglai Pagoda” written by Tie Bao, a calligrapher of the Qing Dynasty, is hung in the pagoda. Inscriptions of celebrities and well-knowned scholars are engraved in the both walls.