Karangasem is one of the regencies on the island of Bali with a complex historical value, namely as a royal city that has a background of close interactions with surrounding communities and acculturation in it. The Karangasem City has certainly undergone changes from the royal period to the present, and has also influenced its sacred values, especially in the Puri Karangasem area. This has to be studied to preserve the spirit of place of the area. This research examines the spirit of place of the Puri Karangasem area and its surroundings by tracing the history related to the physical changes of the city. The historical tracing includes three timelines of discussion: the royal reign, the Dutch East Indies colonial reign, the post-independence reign to the present. This research also identifies the causal factors of the physical changes. This research uses a qualitative research method with a grounded research approach. It employs in-depth interviews, observations, and a document survey. The analysis was carried out by comparing the data with reference theories. The findings show that there are significant changes in the physical area of Puri Karangasem, which includes the spatial structure of the city and the Puri Karangasem architecturally. However, Puri Karangasem along with the catus patha pattern and the distribution of Muslim villages become the spirit of this area. It is still maintained and sacred for the surrounding community.