This palace houses the museum of royal traditions and ceremonies since 1992. The name is derived from the tree that grows in the palace ground. The inauguration of Istana Jahar is formally officiated by the Sultan of Kelantan. There is also a marker at the entrance that says “The palace was built in 1887 during the reign of Sultan Muhammad II as a gift to Long Kundur. who was Raja Bendahara and third in the line to the thrones. It was known as Raja Bendahara Palace. Long Kundur succeeded Sultan Muhammad II in 1889 and became Sultan Muhammad III. Istana Jahar was a royal residence during the reign of Sultan Muhammad III and several other sultans.” Beside the palace is the place where the collections of weapons are being displayed as well as the boats and kereta kuda that was used in different occassions before.