At a distance of 1 km from Wanaparthy Bus Station, 58 km Mahabubnagar and 153 km from Hyderabad, Wanaparthy Palace is located in Mahabubnagar district of Telangana.

Wanarpathy palace is a landmark in the town of Wanaparthy. It was built by Wanarpathy Rajas in 19th century. Wanarpathy was one of the important princely region under Hyderabad Nizams. The Palace is named as Mustafa Mahal after a Muslim saint. This Palace shows the British- Mughal and South Indian architectural styles.

During the rule of British Empire in India, the Nizams of Hyderabad ruled this place with the help of feudal lords who govern the area to collect the taxes from farmers. Wanaparthy was governed by a feudal ruler, Raja Rameshwar Rao II. Wanaparthy was one of the 14 major Zamindari segments in Telangana in Post-Independent India.

Raja of Wanaparthy, Raja Rameshwar Rao II died on November 22, 1922 and his successor, Krishna Dev was a minor, so his estate was managed by the Court as his ward. Krishna Dev expired before attaining adulthood and the crown passed on to his another son Rameshwar Rao III. After the abolition of Zamindari system in India, the glory of Raja of Wanaparthy began to fade.

The palace was donated by the King to house education institute and presently it houses Sri Krishanadevaraya Polytechnic College. This College is the first Polytechnic College in Telangana was inaugurated by Pandit Jawaharlal Nehuru, the first Prime Minister of India.