This is one of the major monuments that has become a popular tourist attraction of Dalhousie. It was constructed by Raja Umed Singh and features a nice blend of the British and Mughal architecture. The 18th century style wall paintings found in this palace are quite enticing. Some other amazing wall paintings from here were sent to the Delhi National Museum. The former residence of the Chamba rulers is now used by the Handicrafts Department of the Himachal state government.