It was built as a summer resort and often a transit halt for the Maharajas of Jeypore when they travelled to the capital of the presidency in Madras.

The Raja of Salur owned a sea-facing land which was purchased by the Maharaja of Jeypore for constructing the palace.

The wooden windows are framed by segmented arched openings and the high Madras roofing within the halls are extensively employed by Burma teak to ensure cool comfort during the scorching hot summers of the Eastern Coast.

The main structure has semi-circular arched verandahs and the rectangular wooden windows in the central porch with ventilators leading into the palace.

Two cannons were placed on top of the guard rooms and two Grecian statues of sentries were placed on both sides of the finely crafted wooden main gate.

In 2017, the blockbuster Singam 3 directed by Hari starring Suriya, Anushka Shetty and Shruti Haasan portrayed the palace as a police station.