It was built by the Mughal Emperor Shah Jahan as a summer house for the Royal families, comprising a complex network of interconnected tunnels. He built it along with the Sheesh Mahal. Being a summer chamber the astonishing feature of the palace is its ventilation systems. The place remains cold during the scorching and humid summers and and warm during the freezing winters. It was also the secret escape route for the royal families. If attacked by invaders, the royal females and children would make their way out of the Fort through these tunnels which led to the River Ravi. At that time River Ravi was flowing close to Lahore Fort and the basement of this summer palace was built to cater such needs of the royal family in those times.
Walled City of Lahore Authority (WCLA) began the conservational works at Summer Palace in 2023.