Build in the 18th century, this magnificent fort in located in the foothills of Aravalli, right below Bala Quila. The fort is a perfect blend of Mughal and Rajput architecture. There is an artificial lake within the vicinity of City Palace, which was built by Maharaja Vinay Singh in 1815. An elevated door shaped pavilion is built within the Vinay Vilas Mahal, which depicts the pride and honor of Rajput kingdoms.

At present the ground floor of the fort is used as government offices while the other floors have been transformed into an historic museum, which was built by Maharaja Tej Singh Prabhakar Bahadur (last ruling king of Alwar) in 1940. It houses different treasures like armor, furniture, manuscripts, etc. The fort is the only place in Alwar where one can get a glimpse of opulence of the Rajput and Mughal kings. Alwar tour is incomplete without visiting the City Palace.