A large number of Koreans trace their ancestry to this legendary princess, who is known as Queen Heo Hwang-ok.
The main streets of Ayodhya wear a scintillating look with illuminated lamps and special decorations.
Moon who is on a three-day visit to India arrived in New Delhi on Sunday evening.
"Nobody can do injustice to Ayodhya," he said, adding that the holy city is identified by Lord Ram.
According to Korean legends, Princess Suriratna from Ayodhya had travelled to Korea and married King Kim Suro and became Queen Heo Hwang-ok some 2000 years ago.
Kim said that his meeting with Moon would serve as a "historic chance" for the Korean people, who want to see the strengthening of inter-Korean relations.
Spectacular IMAGES from the closing ceremony of the 2018 Winter Olympics held in Pyeongchang, South Korea
After entering the Peace House for the inter-Korean summit, Kim wrote in the guest book 'a new history begins now'.