The history of the shrine goes back to the early seventeenth century when the Mughal Emperor Shahjahan's Subedar, Sadiq Khan, laid out a garden here & constructed a palatial building, Ishrat Mahal or Pleasure House in 1623. However, the Emperor, during his visit in 1634, ordered the building to be converted into a prayer House with some additions & alterations. During the time of Aurangzeb, when Moi-e-Muqqadus (The Holy Relic) arrived in Kashmir in 1699, it was first kept in the shrine of Naqashbad Sahib in the heart of the city. Since the place was found to be insufficient in view of the unprecedented rush of people who thronged the place to have a glimpse of the Moi-e-Muqqades, it was decided to shift it to Hazratbal, then known as Sadiqabad. The construction of the present marble structure was started by the Muslim Auqaf Trust headed by Sheikh Mohammad Abdullah in 1968 and completed in 1979. The "Moi-e-Muqqadas" (Holy Relic of Prophet Mohammad S.A.W) is displayed on Various occasions related with the life of Prophet & his four holy companions.