This quadrangle incorporates two important buildings dated to Shah Jahan’s period, the Diwan-e-Khas and Khwabgah-e-Shah Jahani. This quadrangle was probably Shah Jahan’s favourite abode and it must have been profusely ornamented. This quadrangle was created on the pattern of the classical Chahar Bagh with the size of 150 ft x 150 ft, compared to Jahangir’s Quadrangle. It is bordered by the elegant Diwan-e-Khas on the north. Khwabgah-e-Shah Jahani is on the south, the back of western daIans of Jahangir Quadrangle in the eastern periphery, while the attached accommodation of the Lal Burj borders the western side.
The quadrangle is laid out in the form of a chahar bagh or paradise garden, including the central tank and mahtabi (central platform). Directly below Deewan-e-Khaas attached to pictured wall is the Arz Gah, which is also dated to the Mughal period.