According to historical records, Koshak Mahal was ordered to be built by Mahmud Khilji of Malwa when he passed through Chanderi in 1445 AD. The original plan of the Khilji ruler was to construct a seven-storey palace though only two could be completed during his lifetime. The Mahal is divided into four equal parts and has architecture similar to Mandu.
Kushk Mahal is located four kilometers from Chanderi off the Isagarh Road. The monument is erected on four pillars and is 116 square feet in size. Each story is 15 feet high and the verandahs are 43 by 43 feet wide. The two main door entrances are 45 feet high and 26 feet wide. The width of the walls are 10 feet thick. Every story has six doors and one window. The architect of this palace has blended and incorporated the styles of the Malwa Islamic, Iranian, Afghani, and Indian Vedic architecture forms. It was planned to made of 7 stories but now 3 and half stories exists.