It was the gateway to the palace of the Naib Nazim of Dhaka, the deputy governor of Bengal Subah in the Mughal Empire.

On 3 January 1953, Ahmad Hassan Dani founded the Asiatic Society of Pakistan on the grounds of Nimtali Palace.

This was supported by the Bangladeshi Ministry of Cultural Affairs on the occasion of the 400th anniversary of Dhaka's founding under Mughal rule.

[6][7][8] A public museum showcasing the life of Dhaka's elite in the 18th and 19th centuries is now housed inside the arch's three floors.

The ground floor includes video presentations, records of Dhaka's history and tributes to the founders of the Asiatic Society.

The third floor has the largest collection of exhibits spanning the Mughal and British periods, including a prop up of the Naib Nazim's court, porcelain, coins, clippings of the Lloyd's Evening Post, paintings, muslin and other historical items.