Situated on an island in the river Shipra, Kaliadeh Palace was built in the year 1458 AD by the Sultans of Mandu. The palace was demolished at the time of the Pindaris and was restored to its former glory by Madhav Rao Scindia in 1920. The central hall, which is surrounded with galleries, presents a classic example of Persian architecture. Though lost in the loneliness of the torrents of Shipra River, even now, this water palace holds some religious significance. People from the nearby villages took a dip in one of the tanks, which is called as Surya Kund.
Once a hall of fame, this majestic monument holds two Persian inscriptions, which states about the visit of Akbar and Jahangir. The splendid landscape of the curving river on both sides of the Kalideh palace and the man-made tanks and channels, with water murmuring through them, offers a stunning background to the imposing building.