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.
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.