Situated on the Bhopal-Berasia Road, Islamnagar is around 11 km from the city of Bhopal. It was set up by Dost Muhammed, the Afghan governor of Bhopal. This hamlet is renowned for the palace of Bhopal's Afghan rulers. Other important monuments are the hamam (baths) of the Chaman Mahal and the double-storeyed Rani Mahal.