It was built by Shah Jahan in about 1633 A.D. It is located in the northern portion of the Paen Bagh. This separate court was meant to provide isolation to the emperor besides Harem and Royal court. The plinth and door frames of the pavilion are of marble but its roof is curvilinear type. This residence of emperor was completely in itself a unit as connected with number of basement chambers (Tah-Khanas), cold chambers (Sard-khanas), and a Mosque. In sikh regime this Khilwat Khana was named as Khilat Khana where robes of honour were bestowed on distinguished men.