This simple yet imposing building, located on the Isagarh road at a distance of 4 kilometres from Chanderi proper, was built in 1445 as a victory monument. Chronicler Mohammad Kasim ‘Farishta’ in his Tarikh-e-Farishta mentions that the palace was built by the Sultan of Malwa, Mehmood Shah Khilji, to commemorate his victory over Sultan Mehmood Sharki in the battle at Kalpi.