Dakhni Sarai is a good specimen of the Mughal caravan sarais, built along the old highway in Dakhni village. It is on the Nakodar-Kapurthala road, about 12 km from Nakodar. This magnificent inn is said to have been constructed by the famous Mughal nobleman Ali Mardan Khan, during the reign of the Mughal emperor Shah Jahan.
The sarai has a closed quadrangle with one hundred and twenty four cells around it. Inside this quadrangle, there is a mosque and a well. The half dome portal of the mosque is decorated with glazed tiles and its interior contains exquisite painted motifs over lime plaster. There are two imposing gateways in the center of the eastern and western quadrangles.
The outer wall of Dakhni Sarai, at the four corners, is strengthened by circular bastions. The three storied facade of the gateway has recesses and openings, the smaller ones are closed with finely pierced tracery screens of red sandstone. The gateway projecting out of the wall is strengthened with octagonal towers, crowned with domical cupolas. Decorated glazed tile-work showing geometrical and floral designs makes the structure very attractive.