This palace was also called 'Daulat Khaneh-e-Mobarakeh Nagsh-e-Jahan' and the 'Daulat Khaneh Palace'. Its unique archaic architecture is related to the Safavid era. This edifice was constructed under the orders of Shah Abbas I. The monarch would receive special envoys in this palace and hold his audience here. Valuable miniature paintings, the works of the reputed artist of the times Reza Abbassi, and other traditional works of art can be noted here. Plasterwork of the 'sound room' was modeled such that the acoustic affect produced natural and pleasant sounds. The sovereign and his guests would be spectators to polo, illuminations, fire-works and the dramatics that took place in the Nagsh-e-Jahan Square from the halls of this elegant palace.