Also known as Haveli Khadeem, the Purani Haveli means the old mansion. When Muhammad Quli Qutb Shah (1590-1612) planned the layout of the city, he earmarked a large estate for the residence of his Peshwa (Prime Minister) Mir Momin, who was a highly respected and learned man during the reign of the Qutb Shahs. In 1777, Mir Nizam All Khan, the second Nizam, (1761-1803), acquired the existing area of the Purani Haveli from Rukn-ud-Daula, a descendant of the family of Mir Momin. The present palace building was constructed for his son Sikander Jab (1803-1829).

When Sikander Jab became the Nizam in 1803, he moved his residence to Khilwat Mubarak at Moti Galli near Charminar. As the old palace remained unoccupied for some time, it lost its importance and came to be known as Haveli Khadeem. At a later date Sikander Jab added some more wings to the old complex. The fifth Nizam, Afzal-ud-Daula (1857-1868), was born in this palace. He lived in it for a long period.

The sixth Nizam, Nawab Mir Mahboob All Khan, (1869-1911) was also born and lived in Purani Haveli for most of his life. Hence the glory of Purani Haveli was at its peak during his time. Nawab Mir Mahboob Ali Khan and his son Nawab Mir Osman Au Khan added some more wings to Purani Haveli during their reigns. Nawab Mir Osman All Khan, the seventh Nizam, was also born in a portion of Purani 1-laveli known as Madar-e-Deccan Hall but later he lived in King Kothi Palace.

King Kothi originally belonged to Jamadar Kamal Khan and had iron grills on the walls with the letters ‘KK’, hence the palace was named King Kothi to enable the letters to be retained. It is worth mentioning that the seventh Nizam, Mir Osman Ali Khan, (1911-1948) used to visit Purani Haveli almost every day to pay his respects to his mother, who lived in a portion of one wing till she died. It is interesting to note that the practice of firing a gun from Purani Haveli to indicate the time of day to the public, thrice a day, was Jarted during the reign of Mir Mahboob Ali Khan, and continued till the late 1950’s.

The main building of Purani Haveli is reminiscent of the 18th century European style of architecture and contains some old western-style furniture. Mir Mahboob All Khan also built in this palace the longest wooden wardrobe in the world, 240 feet long, which still exists. In 1971, Nawab Mukarram Jah Bahadur, grandson of the seventh Nizam donated the palace to the Mukarram Jah Trust for educational purposes.