Purani Haveli is a palace which served as the official residence of the Nizam. It was also called Haveli Khadeem and was constructed by Ali Khan Bahadur, Asaf Jah II for his son Sikander Jah, Asaf Jah III.

This is a U shaped structure with two wings running parallel to each other. The residential palace is located in the center. The main building has a resemblance of European mansions of 18^th century. Within this palace is located the Nizam’s museum. A school and an Industrial Training Institute are functioning within its premises at present.