The Bao Gu Orphanage (also spelled "Bau Gu") is a communal shelter for homeless children, where they are cared for until they get adopted. The orphanage is presumably located somewhere in the Valley of Peace.
The Bao Gu Orphanage is said to be a very peaceful and happy place for young orphans. Every month, adults would come to adopt the children at the orphanage and take them to a loving home and family.
However, the orphanage had a problem: young Tigress, who was one of the children who lived at the orphanage, was feared by the caretakers and other children due to her inability to control her strength and temper. Because of of the threat she posed, the caretakers had placed her in a sealed, isolated room away from the other children, and then called upon the assistance of Master Shifu. Through time and patience, he taught young Tigress the discipline she needed to control herself through a game of dominoes.
The orphanage became a happy place once more after Tigress' progress, and she was able to safely play with the other children. However, when the time came for adults to visit the orphanage, Tigress was still not chosen for adoption, as the adults were still too afraid of her. Tigress was then taken in by Shifu as his student and given a home at the Jade Palace.
- "Bao Gu" translates to "precious valley" in Chinese (simplified Chinese: 宝谷?; traditional Chinese: 寶谷; pinyin: bǎo gǔ). This could be interpreted to mean that the orphanage is located in the Valley of Peace.