The Kuatan Palace is located at the ancient city of Kuatan in the Realm of Outworld. The throne room is decorated with the heads of ancient great rulers of the Shokan race. Prince Goro ruled here as one of the most feared half human, half dragon Shokan warriors. After his apparent death, an elaborate funeral procession led his casket to the Circle of Judgement. Statues of his ancestors looked on while the casket was lowered into the eternal river of lava. Princess Kitana, representing the Royal Family of Edenia, attended and bid farewell to her old friend. Unbeknownest to Kitana, however, it was not Goro inside the casket but a disfigured Shokan warrior Goro had placed his royal seal upon to fool people into thinking he had died in battle. He had actually been saved from death by Shao Kahn himself after being left for dead from a sneak attack by Noob Saibot.
This arena first appeared in Mortal Kombat: Deadly Alliance and returned later in Mortal Kombat: Deception complete with a death trap that left victims burning alive in the molten lava surrounding the platform.