The building was initially built to hold courtly events and government offices of the then princely state of Bahawalpur. The palace was built by Bahaw
al Khan V, and initially named Mubarak Mahal. It was completed in 1905, and is near several other palaces within the Bahawalgarh Palace Complex, including the Nishat Mahal, Farrukh Mahal and Gulzar Mahal. The palace sits in a 75 acre garden.