The palace of Tipu Sultan, which is near the fort, is now a museum. The construction was started by Hyder Ali but completed by his son, Tipu Sultan in 1791. This palace was originally a summer retreat and it took ten years to plan and complete the construction. It is a two-storied ornate wooden structure with pillars, arches and balconies flanked by gardens on either side leading to the palace. The Eastern and Western projecting balconies of the upper floor contained the seat of state from where Tipu conducted affairs of the state. An inscription on the wooden screen describes the palace as the 'Abode of happiness'.