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Ambi's Palace is where Queen Ambi resides for the duration of Oracle of Ages. This palace also serves as a mini-dungeon Link must go through to fight Veran who is possessing Nayru. When Link enters the palace through a secret entrance, he must avoid being caught by guards to enter to the second floor, in which the battle takes place.
Southern Exit - Lynna Village
To find the secret tunnel, Link must find and press the 4 switches in each corner of the garden without being caught by the guards patrolling the garden, after Link presses all 4 buttons you can find the tunnel entrance to the right of the garden entrance.
After entering the palace you will find the stairs to the 2nd floor by going left 1 screen. On the second floor you must go right 2 screens and up 1 to get to the battle.