Built by Malik Ambar, This monument is now in a very dilapi dated condition except for the human and the central part of the diqan behana. The wood work and stucco plaster has all gone. There were evidently five zenanas in the interior with a diwani A'm a Diwanikhas' a masjid and a kacheri each provided with a garden and a cistern.

When Nizam Ali Khan was at Aurangabad, he occupied the Naukonda Palace. The whole building is in ruins now. The palace consists of 5 zananas. It also consists a Dewan-i-Am, a Dewan-i-Khas, a masjid and a Kachari. Each section of the palace is provided with a garden and a water tank.

The central part of the palace is in a good state. Also a hamam meaning hot bath which is attached to the palace is also in a fine shape. The wood work and the ornament plaster are missing. The kachari consists a gadi of the Nizams.

This palace had nine apartments, the interior buildings consisted of five zananas, a Divan i Aam, a Divan i Khas, a masjid and a kacheri, each provided with a garden and a cistern. The walls of the central part of the Devankhana, and a hamam or hot bath attached to the building, are in a fair state of preservation. However, the wood-work and the stucco plaster are all gone. The Divan i Aam is a large quadrangular structure much in ruins. The Kacheri close by contains a gadi of the Nizam. In the throne room are placed the original paraphernalia.