This exotic lake palace was constructed as a summer resort in 1930 by late Maharaja Birbikram Kishore Manikya Bahadur in the middle of a natural lake called Rudrasagar with an area of 5.35 Sq.Km. The construction was undertaken by Martin & Burn Co. and it is the only lake palace in the entire eastern India.
A good combination of Hindu and Mughal architecture is noticed on the domes of the palace. There are mainly two parts of the palace - one on the western side known as Andar Mahal which was used by the royal family and another on the eastern side which was used for the security personnel and servants. There are 15 rooms in the main Andar Mahal overlooking a beautiful garden. It also has an open air amphitheatre.
The lake is home to a large number of migratory birds every winter. A boat race is also organized in July/August. Tourists can enjoy boat rides in Rudrasagar.