The Lalbagh Palace of the Holkars on the banks of the Khan river is one of the grandest monuments the Holkar dynasty left to Indore city. A reflection of their taste, grandeur and life style, its construction began in 1886 under Tukoji Rao Holkar II, and was carried out in three phases, the final phase completed in 1921 under Tukoji Rao Holkar III.

     It is a blend of the baroque and renaissance styles, and in its days was one of the most elegant residences in India. It is being developed by the Government of Madhya Pradesh as a cultural centre. The main attraction are the splendidly proportioned and furnished rooms, with frescoed ceilings and guilded ornamental mouldings. The architecture and decoration of this palace, inhabited by the Holkars till 1978 reflect the highly westernized aesthetic sensibility of the later Holkars. Tukojirao III was the last incumbent of this magnificent palace. The whole complex has a total area of 28 acres and at one time had one of the best rose gardens of the country. Though simple to look from outside, the magnificent interior takes one into a dreamland of past glory. Lavishly decorated in the style of Varsailles Palace, its italian marble columns, grand chandeliers, rich persian carpets, flying nymphs on the ceiling, Belgium stained glass windows, Greek mythological reliefs, Italian style wall paintings, stuffed leopards and tigers are breathtaking. The ballroom has wooden floor on springs for extra bounce. The kitchen was built on the opposite bank of the river and was connected to the palace by a well lighted underground tunnel. The imposing gates of the palace are unique in Asia. A replica of the gates of Buckingham palace (London), about twice their size , were moulded in cast iron and shipped from England. They carry the Holkar state emblem which means "He who tries will succeed".