Nazarbaug Palace, built in old classical style, was a Gaekwad Royal Palace erected by Malhar Rao Gaekwad in 1721. Made in white-stucco, this palace was the repository of the jewels of the Gaekwad family. In 1927, the palace was believed to house a collection worth INR 444,165,200, including a necklace adorned with 125 carat Star of the South diamond. A cloth embroidered with precious stones and seed pearls is also a part of this collection.

The palace also owned barrels of solid gold and silver guns, each of which weighs more than 100 kg. Other displays at the palace are royal heirlooms and works of old masters like Raphael, Titian and Murillo. The collection also includes Indian Paintings, Graeco-Roman exhibits, Chinese and Japanese art. Once used on ceremonial occasions by the Gaekwads, this palace houses a glass palace (Sheesh Mahal). It is located near Mandvi Clock Tower.