The Ottoman king, Sultan Abdoulhamid, send precious gifts to Nasser-ol-Din Shah.  Reportedly, these gifts were copious and enough to fill a castle.  The Qajar monarch was delighted with these gifts.  He decided to build an exhibit hall worthy of these gifts within the confines of Golestan Palace.  It is believed that Nasser-ol-Din Shah, himself, designed the structure, with a central hall large enough to house the carpet that was sent by Sultan Abdoulhamid.

Completed in 1883, the Abyaze (White) Palace now houses one of the most interesting ethological museums in Iran.  There is a colorful exhibition of tradition Iranian costumes, as well as a folk art exhibition.