The location was founded in AD 1591, more than 400 years ago, by Mohammed Quli Qutub Shah, the founder of Hyderabad city.

In Arabic, and derived from it in Urdu, Turkish and Persian, dar al-shifa means "house of health", i.e. "hospital".

The area got this name for the hospital built by Sultan Mohammed Quli Qutub Shah over 400 years ago.

The alam[definition needed] is made of part of the sartouq, a metal headgear with spikes, which the fourth Shia Imam Ali ibn Husayn Zayn al-Abidin had to put on after being captured by Yazid I's forces along with the Ahl al-Bayt women.

[2] Dar-ul-Shifa is surrounded by the Musi River, Noorkhan Bazar, Dabeerpura, Purani Haveli and Chatta Bazaar.

There are two famous orphanages, namely Dar-ul-Yatama and Zehra boys, which dal under[clarification needed] for Shia community charitable hostels.