One of the finest palaces in Hyderabad, the monument is situated on a hill of 2000 feet high, located 5 km south of Charminar. Built by Nawab Vikar-ul-Umra, the fifth Paigah Emir, it was purchased by Nizam VI in 1897 as was used as a royal guest house and is now the property of Nawab Mukarramjah Bahadur, the grandson of Nizam VII.

The palace was designed by an Italian architect and its foundation was laid on the 3rd of March, 1884, it took 9 years to complete the construction of the Palace. The palace boasts of one of the most lavishly decorated interiors.

This exquisite palace made of Italian marble was built by one of the Paigah nobles Nawab Vicar Ul Umra in 1892. A majesty testimony to the glory of the Nizams, it stands atop a hill 2000 feet high. It has often been referred to as the 'Mirror of the Sky'. The palace was designed by a Italian architect and follows a western architectural style. Falaknuma houses a large collection of rare treasures collected by the Nizam including paintings, statues, furniture, manuscripts and books. The Jade collection of the Palace is considered to be unique in the world.

The palace is laid out in the shape of a scorpion with two stings spread out as wings on the north. The middle part is occupied by the main building and the kitchen and harem quarters stretch to the south. The Nawab being an avid traveller, varies influences show on the palace architecture. Louis XIV-style decor with a lavish Mughal ambience, Italian marble staircases and ornate fountains. Its glass stained windows throw a spectrum of colours into the rooms. The palace has a library with a walnut carved roof, a replica of the one at Windsor Castle. The library had one of the finest collections of the holy Quran in India.

Palace is about 12 km from Hyderabad railway station and 7 km from Hyderabad bus station.

Excellent transport is available from all parts of the twin-cities.