Situated in the new part of town, the picturesque Ram Bagh garden was once the summer palace of the erstwhile Maharaja Ranjit Singh (1780-1839), the Lion of Punjab. Earlier known as company garden, its name was changed to Rambagh by the king to commemorate his faith and devotion to Guru Ram Das, the founder of the city of Amritsar. Build in the model of Shalimar Gardens at Lahore, Ram Bagh encompasses a collection of rare coniferous trees, herbal plants and water channels set with fountains and golden fish. At one end of the garden, there is a lively statue of the king saddled on a horse.

The palace located in the middle of the garden has been converted to a museum. It contains weapons dating back to Mughal times and some portraits of the ruling houses of the Punjab and a replica of the diamond 'Kohinoor'. One can enter the Ram bagh through a huge fortified gate with a small entrance fee. It is closed on Wednesdays.