This hill is named after the fourth Caliph Maula Ali, whose family was sacrificed in Karbala. It is said that a saint from Chanderi used to visit Karbala every year in the month of Muharram and bring back its holy soil. One year he was unable to go and as an alternative made a mound of the holy soil on this hill and prayed there. Since then the hill has been famous as the Maula Ali Hill. Also to be found on the hill are the Hazrat Bismillah Shah mazaar and an Alamgiri mosque.