This magnificent 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 having 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.Flood lighting of the palace has been arranged in the evening. In addition, water sports facilities are being extended. The palace is going to be renovated and a museum depicting the royal life style will be set up inside the palace. In addition Light & Sound show on the historical past and cultural heritage of Tripura will be organised in the palace. In water number of migratory birds are found in the lake surrounding Neermahal.