The palace of Nurullah-bai is in the northwestern part of Dishan-Qala. It was built by Muhammad-Rahim-khan II for his son and heir Asfendiyar-khan in 1906-1912.

 After the Bukhara palace of Sitorai-Mohi-Hosa the palace represents eclectics of Khiva and European architectures.

The palace includes a reception hall of Asfendiyar-khan, court, dwelling buildings and madrassah. German colonists participated in decorating of ceilings, windows and parquet. Decorative ceramic tiles were manufactured in Petersburg.

 Original interior of khan's reception room is decorated with carved ganch, gilding and polychromic painting.