The palace complex was within the walls of the historic Arq (citadel).

Agha Muhammad (reigned 1779-1797) selected the citadel for his palace and administrative centre, and Fath ‛Ali Shah (reigned 1797-1834) completed the Gulistan ('Rose Garden') Palace. The only buildings that remain from this sprawling complex with luxuriant gardens set with pools and pavilions are the Takht-i Marmar, a columnar audience hall, and the ‛Imarat-i Badgir on the north and south sides. Between 1925 and 1945 a large portion of the buildings of the palace were destroyed on the orders of Reza Shah who believed that the old Qajar palace should not hinder the growth of a modern city.