The rule of the Qutb Shahi dynasty saw the construction of several buildings for military and administrative purposes, the Khazana Building being one of them. It was the edifice in which the treasure of the Sultans was stored. The management of these buildings was subsequently passed down to the Nizams, however, with the independence of India in 1947 and the rule of a democratic government, the Nizam's had to relinquish their control in 1948. Initially, it was used by the government as a building where the salaries of the Indian Military staff were distributed. Later, in 1951-52, it was handed over to the Department of Heritage, Telangana. Deemed as a heritage site of cultural importance it is now used for the exhibition of artefacts.
Canons from the Qutb Shahi period, stone sculptures from Chalukya, Kakatiya and Bahmani periods, antique coins and relics from various excavations are housed in this museum. Other adjoining structures of archaeological significance include the Ashrafi Mosque, the Chani Mosque and the Sham Sheer Kota.
