This article reviews the aspect of Silla kingdom’s capital city by analyzing articles that is related from «Samguk Yusa» as part of the study of literature on the ancient Silla kingdom of Korea. First, the articles related to the Silla kingdom’s capital city in “Samguk Yusa” were categorized and analyzed by themes, also the utilization plan for restoration was examined. Next, I tried to estimate the transition process of the city and the scope of its area through the articles related to the city where palace was placed. In general, after the reunification, the capital city of Silla changed into a form that has expanded considerably to the outside of the Wolseong fortress wall, which is the former kingdom. As the function and status of the royal palace, which is the place where the king resided is changing and the Wolsung fortress wall, which became the former royal palace, is used to perform ceremonies and diplomatic meetings while the king is generally inhabited in the Manwolsong castle. It is thought that it changed into the form when two palaces in the city were used which maintained until the end of Silla.