Sundari Chowk lies south of the larger Mul Chowk. With its sunken water tank known as Tusa Hiti, superbly depicting the images of various gods and deities, and with other beautifully executed craftsmanship on stones, it is one of the most beautiful and artistic courtyard in the whole palace complex. Tusa Hiti was originally built in about 1670 by Siddhinarsingh Malla and restored in 1960. A toy- size replica of the Krishna Mandir sits above the hiti. The courtyard is surrounded by a three storey building with finely carved struts and windows and was the residence of many generations of Malla kings.

A large bell is hung between two stone pillars and has a metal roof with gajuras across from Mul Chowk. It was built by King Jayavishnu Malla and Queen Chandra Lakshmidevi and used for special proclamations by the Malla Kings. It is now rung during Khadga jatra in honour of the Goddess Taleju.