The Purani Haveli was originally built with the intention of serving as the residence of Mir Momen, the Prime Minister of Mohammed Quli Qutub Shah who was the ruler of Hyderabad during the 16th century. Acquired by Nizams during the 18th century, this sprawling grand structure called Purani Haveli was refurbished by the second Nizam for his son Sikandar Jah in the year 1777. However, Sikandar Jah transferred residency to the Khilwat complex in Chowmahalla Palace. The palace then came to be known as the Purani Haveli and was away from the limelight until the 19th century when Mir Mehboob Ali Khan, the sixth Nizam of Hyderabad made it his official residence and spent most of his life here.