The palace was the residence of the Mughal Emperors Akbar and Jahangir during their visits to the Dargah (1613 to 1616). The entire building is surrounded by two thick walls; one on the outside and another running parallel to it on the inside. A board placed outside of it indicates that Sir Thomas Roe, the celebrated English ambassador, was first received here by the emperor.

The palace is now houses a small museum showcasing mainly Hindu statues, which dates from the 8th century. It also displays fine examples of Rajput and Mughal armour. A statue of Goddess Kali, in black marble, can be seen here. The museum opens daily, except on Fridays, from 10:00 to 16:00 hrs.