This palace is situated in the heart of Shivamogga on the banks of river Tunga. The curving, indo-saracenic pillars are made of teak and rosewood. The grounds of the palace overlook the River Tunga. The palace was built in the 16th century by the ruler Shivappa Nayak of the Keladi Dynasty. It does not look like a regular palace and is entirely built of rose wood. This palace is now museum maintained by Archeology department of Karnataka and entrance is free.