Built in 1540 AD opposite to the Fort Aguada, Cabo palace is situated at the end of a narrow cape where the Mandovi and Zuari rivers merge into the sea. It was originally built as a fortress to monitor and control the entry of vessels at the mouth of the Mandovi and Zuari rivers and to guard them. Also referred as the Cabo Raj Bhavan, the palace is the official residence of the governor of Goa.

Cabo palace is known for panoramic views – Indian Ocean on the west, the Bay of the river Mandovi on the north and the busy port of Mormugao on the east.

Although it is private property and tourists are not allowed to enter the premises, but one can see this palace while on a dolphin boat trip. On the road to Fort Aguada from Sinquerim, there are boat trips with the objective of seeing dolphins and the palace is visible from the sea.

At the Cabo Raj Bhavan site tourists can also visit a small church that was founded in 1541 by the Portuguese which is known as the Our Lady of Cabo church.