The first general hospital of Hyderabad State (Deccan) was 'Darush Shifa' that was constructed in 1595 AD. Darush - Shifa or House of Cure was a double storeyed hospital-cum-residential college of the Unani system of medicine. It is situated barely 200 yards away from the Purani Haveli. It was built during the reign of Quli Qutb, the fifth Qutb Shahi king. Darush - Shifa was equipped to give medicine free of cost to as many as 400 patients at a time. Physicians came from as far away places such as Greece and Italy besides the Persian Gulf to attend to the sick here. At the Ashur khana in the central quadrangle is the Sar Taqu Alam, a steel standard on which was fixed a piece of the fetters of Hazrat Zainul Abideen, the fourth Imam of the Shia Muslims.
It is said that Muslims gathered here to mourn for those who died in the battle of Karbala during the first ten days of the month of Moharrum. The mosque outside the main building, called as Darush Shifa, displays the finest Persian mosaic in Qutb Shahi architecture.