Standing in the middle of the Rudrasagar Lake, this architectural beauty rightly derives its name which means Water Palace. This place served as a summer resort for King Maharaja Bir Bikram Kishore Manikya in 1930.The only lake palace in eastern India, Neermahal was designed and constructed by Martin & Burn Co. sandstone and marble has been used for building this palace, which features a profusion of towers, balconies, pavilions and bridges.
Surrounding the palace building are lush green lawns and colourful flower beds. Using flood lights, a light and sound show on the historical past and cultural heritage of Tripura is organised in the palace every evening. Other attractions of the palace include water sports facilities, and migratory birds spotted over the lake.The surrounding lawns and flower beds add to the beauty of the place. Light and sound show is held here every evening.