Perched on the top of the highest hill in Putrajaya, Istana Melawati is visible from many points of Putrajaya. Malaysia's constitutional monarch has his palace in Kuala Lumpur, the federal capital. However, when he performs functions in Putrajaya, he resides in Istana Melawati.

The Istana shall be oriented south-west towards the general direction of the Putra Bridge - Lake area. The elevated position on the hill gives it a strong presence befitting the status of a Palace, cascading down the slope gently from the higher southern level to the lower north-western corner of the hill. This is to be the royal retreat for His Majesty The Yang Di Pertuan Agong and his family, the venue for meetings with other Rulers and Yang Di Pertua Negeri as well as the venue for certain official and private functions hosted by the Yang Di Pertuan Agong.