Maharaja Ranjit Singh who was called the lion of Punjab played a decisive role in Indian history and established very vast kingdom with the help of sword. One side he extended his territory to the Khyber Pass and china and other side to the Sind and Sutlej. He was only sikh ruler in Punjab who raised the flag of freedom because the whole India was occupied by the East India Company except Punjab.

He acquired Lahore in 1799 and made his Capital. He also took over Amritsar in 1802 and had given the title of spiritual capital. A garden was laid out in 1818 in the north of the city at the behalf of Shalimar Bagh of Lahore, known as Ram Bagh at the name of Guru Ram Dass. The garden was enclosed by a masonry wall about fourteen feet high ramparts and a gate capable of carrying gun, outside the wall a moat filled with water from Hasli canal. At each of the corners of the garden was built a small ornamental burj or Kiosk (Tower).

In the centre of the garden a double storyed palace was made with a basement (tahkhana) as a cool underground chamber. Maharaja devoted his time in this palace in summer days during the visit of Amritsar. The whole work of the garden had been done under the supervision of Faqir Azizuddin, Sardar Desa Singh Majithia and his son sardar Lahna Singh. Faqir Azizuddin brought the workmen from Delhi and they constructed the whole building as well as the garden in red sandstone. The approximately cost to make the garden was 214000/- Nanak Shahi Rupees and 125000/- Rupees for the summer palace of Maharaja Ranjit Singh.

The summer palace is now protected under the Punjab Ancient and Historical Monuments and Archaeological sites and remains Act, 1964. It has been converted into the shape of Museum during the 400th years celebrations of Amritsar City. The Museum was formally established by Sh. Jagjiwan Ram, the then Union Defence Minister of India on the 29th November 1977. This Museum is most important and cultural pride of the Punjab. It is famous for its rare and priceless collections, particularly Paintings, Weapons and Armours, Manuscripts & Coins. A lot of visitors and tourists visit this museum to see the valuable antiquities and art objects, related to 18th and 19th centuries.