Built in Mughal style, Neer Mahal is situated in the middle of Rudrasagar Lake spanning over an area of 5 sq km. The domes of the palace are a fine blend of Hindu and Mughal architecture. The palace has two parts - one on the western side known as Andar Mahal and another on the eastern side. Andar Mahal, once used by the royal family, is inclusive of 15 rooms. Flood lights and a beautiful garden in the western side add to the splendor of the palace. There is an open stage in the garden, where cultural activities like drama were organized in ancient times.

Besides, a motor boat ghat can be seen inside the palace, which has two stairs – one for Maharaja and the other for Maharani (queen). Boat race is organized here annually between July and August. During winter, a large number of migratory birds flock here. October to March is the best time to visit the palace.