The road through the Kati Ghati gate leads up to the Ramnagar Palace which is also a museum maintained by the Department of Archaeology, Museums and Archives, Madhya Pradesh. Termed as palace, the structure is in fact a hunting lodge and retreat which was built by Maharaja Durjan Singh Bundela in AD 1698. The stone blocks used in its construction are not consistent in size, shape or decorative carving. This clearly indicates that these blocks were sourced from older monuments and ruined structures in the vicinity.
Objects on display include fragments from Hindu temples, idols of deities as well as some well-preserved examples of Sati stones. The temple remains range from the 9th to the 12th century while the Sati stones belong mainly to the 16th to 18th century. These remains were collected from villages which were submerged under water after the construction of the Rani Lakshmibai Sagar.
Surrounded by lush greenery on one side and the Mehjatiya Pool on the other, the palace serves as a popular picnic spot. The Governor Bahjat Khan had ordered the creation this artificial lake and it was initially named Bahjat Khan Pond but the name was later distorted to Mehjatiya. This lake is of historical importance as well. It was here that Babur had camped the night before he mounted the attack on the Chanderi fort, on January 28, 1528.