It was built around the year 1870 by Nawab Safdar Jung Musheer-ud-daula Fakhrul Mulk, a nobleman of Hyderabad state.

[3] Hyderabad, being a city with strong Perso-Arabic affinities, was home to many grand palaces and monuments that were often named after Quranic and legendary places.

Presently the land on which the palace is located houses offices of the Engineers-in-chief and the Chief Engineers of the Roads and Buildings and Irrigation/Command Area Development Departments.

The Government of Telangana previously announced that the structure would be razed because of its dilapidated state.

[9] Built in the Indo-European Baroque style of architecture, during its heyday the palace had over 150 rooms furnished with Louis XVI furniture, nine-hole golf course, polo ground, stable for horses and a dairy farm.