The construction of Chowmahalla Palace was mainly completed between 1857 to 1869 during the rule of fifth Nizam, Afzar-ud-Daulah, Asaf Jav V. However, its building is mostly credited to Nizam Salabat Jang in 1790.

The Palace originally covered 45 acres which extended from the Laad Bazaar on the north to the Aspan Chowk Road on the south. Now, the total remained area of the palace is close to 12 acres.

The Chowmahalla Palace is consisted of two courtyards which are divided into the northern courtyard and the southern courtyard. The southern courtyard of the palace has four palaces which are namely Afzal Mahal, Tahniyat Mahal, Mahtab Mahal, and Aftab Mahal.

The Chowmahalla Palace has Clock Tower, Council Hall and Roshan Bungalow inside it. The Roshan Bungalow has been named after Roshan Begum who was the mother of sixth Nizam.

Khilwat Clock, which is famous for ticking since the construction of the palace, can be seen inside the Clock Tower. At the Council Hall, various manuscripts and rare books which were personal collections of the Nizam have been kept.