The Palacio del Quetzalpapalotl(Palace of the Quetzal Butterfly), was probably used as living quarters by the high priests and possibly the finest and most important dwelling-place in Teotihuacan. It is richly decorated and boasts well-preserved frescoes.

A staircase, which is embellished by an enormous serpent's head, leads to an antechamber decorated with wall-paintings. This leads into a small arched courtyard with square columns which are covered with interesting bas-reliefs depicting the mythological figure of the Quetzal butterfly as well as symbols of birds and water.

Equally remarkable are the heavily stylised figures painted on a red background and the roof edges decorated with symbols connected with the different parts of the year.