"It is custom among warriors bound for the Palace of the Dead to distribute their worldly possessions among already-grieving family and friends."
The Palace of the Dead (also known as the 'Hell's Gate' in the Original and Japanese versions) is an optional dungeon unlocked in Chapter 4, accessed by going to the Warren Report 'Mysterious Blast on Exeter' and following up the events from there to unlock access to the Palace. Afterwards, the Palace is accessed through Bortegun Fens.
Denam finds the way barred in a room full of stone statues. The palace guardian Xadoba (a Gorgon) appears and attacks. (Note - a hidden door must be found before defeating Xadoba in order to proceed further)
Denam stumbles upon a disciple of Nybeth - Georges - who is using a Book of the Dead to turn Zombies into Skeletons and Ghosts and create an army of undead. (Note - It is possible to use your own Book of the Dead in this battle)
Denam catches up with Beelzebuth who summons a horde of undead and challenges the Order.
Floor 100 - Alter of the BeyondEdit
Denam encounters Nybeth, who has become a Lich, in the epicentre of the Palace.
"All who enter this dungeon, abandon what little hope ye may have yet"
The Palace of the Dead is split into 4 main sections, each 25 floors long, with a secret 5th section available during and after CODA Episode 2
This is the longest dungeon unlocked in-game, and has many powerful units mixed in among regular battles, many of which drop powerful weapons and spells, including Tier II of the Ninjutsu attack spells, various Draconic Spells, and several unique Necromancy spells are also found here. Five of the 12 Heavenly General battles are also held at floors 77, 86, 89, 93, and 96.