To the south of Punakha is the valley of Wangduephodrang lying at an elevation of 1240m. The old town of Wangduephodrang, a narrow street with single storied shops, will soon be replaced by a brand new town carved out of terraced rice fields.

The Wangduephodrang Dzong sits majestically on a steep ridge overlooking the highway that forks to the east and south of the country.

As the road heads towards Trongsa in central Bhutan, a turn-off below Pelela pass takes you into the magical valley of Phobjikha, home to the rare Black-Necked Crane that has made Phobjikha its winter home for centuries. The birds fly in from Tibet in October and November and leave just before spring.

Another significant landmark in Phobjikha is the famous Gangtey Gompa monastery, built in the 17th century.