The White Palace of Marghazar was constructed in 1940 by Miangul Abdul Wadud, the first king of Swat, in the small town of Marghazar, which is approximately 13 kilometers from Saidu Sharif. The palace received its name due to its construction from white marble. It has undergone three name changes, initially being called Swati Palace, then Motti Palace, and finally White Palace. Currently, the palace functions as a hotel. The White Palace at Marghazar served as the summer residence for Miangul Jehanzeb, the Wali of Swat. Perched at an elevation of 7,136 feet on Marghazar Hill, it was later transformed into a tourist destination.
The stunning landscape inspired the then King of Swat, Miangul Abdul Wadud, to develop a summer retreat in this location in 1935. The King sourced marble from Agra, bronze from Belgium, and artisans from Turkey who were responsible for the design and construction of the palace, finishing the work in 1941. It was initially referred to as Swatti Taj Mahal, later changed to Motti Mahal, and is now known as Sufed Mahal (White Palace). The area was further enhanced with a selection of flora and fauna, creating a mini zoo as well as a botanical garden. Additionally, there is a large chinar tree, approximately 200 years old, which provides shade for visitors.