Named after a wife of Ameer Muhammad Bahawal Khan V, this palace lies between the other two palaces in the compound. Its construction was initiated by the Ameer as a royal residence in 1905, and completed along with the other palaces in the compound in 1911.
Square in plan, the palace stands on a raised platform with a raised terrace to its east and west. It is smaller in scale and height, and different from the other palaces in the compound in design and plan—simpler, but bearing a distinct European influence. At each corner is a square, double-storey projected room. The facade on each side has a veranda, with a set of three circular arches and two blinded arches, contiguous to each room at its corner. A set of flying steps leads into the front room. There are three rows of such rooms, set in a north-south direction and connected by another set of two rooms facing east-west. Every room leads into another through a wooden door fixed in an arched opening. The central partitioning wall of the two rooms in the middle row was removed to convert it into a large hall. Each room retains a fireplace, richly ornamented with stucco tracery.
The whole palace is built of country brick and its walls plastered. The doors—some of them double-doors-have colourfully decorated borders that display floral designs of possible European origin. The doors and windows all have trefoils arches and brightly painted panes, both also European in style. The white marble pillars of the verandas are carved in relief. The outer surface of the corner rooms bears a series of pseudo-arches. The corner room on the first floor is similar to the room on the ground floor, but has a parapet wall at the top. Its ceiling is painted with lacquered floral designs. The rooms are decorated with fabulous furniture and spectacular carpets. The doors are covered with elegant lushly curtains of maroon color. All of walls are made up of marble and the roofs are made up of mosaic. The large lamps placed in the palace have increased its majesty.