The Mohatta Palace was built by Shivratan Chandraratan Mohatta, an ambitious self-made businessman from Marwar as his summer home in 1927. However, Mohatta could enjoy this building for only about two decades before independence of Pakistan and he left Karachi for India. He built the Palace in the tradition of stone palaces in Rajasthan, using pink Jodhpur stone in combination with the local yellow stone from Gizri. The amalgam gave the palace a distinctive presence in an elegant neighbourhood, characterised by Mughal architecture which was located not far from the sea.

The palace has an area of 18,500 sq ft (1,720 square meters) and its facade is trimmed with windows, stone brackets, spandrels, domes, balustrades with floral motifs and exquisite railings. There are nine domes, with a centre dome in the middle; while the windows in the front portion opening out into the garden are of blue colour and those in the rear area are arched windows with stained glass. The palace has large stately rooms designed for entertainment on the ground floor and more private facilities on the first floor, where there is a terrace provided with a shade from intense sunlight.