This small palace, on an island in the middle of the Lakhota lake, once belonged to the Maharaja of Nawanagar. This fort like palace has semi-circular bastions, turrets, a pavilion with guard-rooms housing swords, powder flasks and musket loops. An arched stone- bridge with balustrade connects the Lakhota Palace with the town. Today it houses a small museum. The fort museum has a good collection of sculptures that spans a period from the 9th to18th century and pottery found in ruined medieval villages from the surrounding area. The museum is reached by a short causeway from the northern side of Ranmal Lake and is open daily except on Wednesdays.