Jag Mandir is also called the Lake Garden Palace and is the other island palace on Pichola Lake, Udaipur. Maharana Karan Singh II who reigned from 1620 to 1628 started the work on its building. His son, Maharana Jagat Singh I (1628-1652), completed and named it. Like most places in Rajasthan, historical facts as well as legends add immensely to the charm of the place.

In 1623, while it was still under construction, Jag Mandir served as a place of refuge for the Mughal Prince, Khurram, when he was in revolt against his father, Emperor Jahangir. With him were his wife, Mumtaz Mahal and two of their young sons, the princes Dara and Aurangzeb. Khurram later went on to become Shah Jahan, famous for building Taj Mahal. It is believed that he incorporated ideas from the design of Jag Mandir into Taj Mahal. The small sandstone palace he occupied, the Gul Mahal (now known as Khurram's Palace) is adorned with a lofty dome crowned with the crescent of Islam.

There is a beautiful courtyard of black and white tile surrounded on one side by the Garden Courtyard of landscaped rose gardens and is dotted with palm trees, jasmine bushes, frangipanni trees, bougainvillea and other flowers that attract hundreds of parrots, pigeons, peacocks and other birds. All this gives Jag Mandir the feel of a garden palace, hence the name Lake Garden Palace.