The Rani Mahal, or Queen's Palace, sits at the foot of Bangra Hill, a short walk from the fort. Built in the 18th century as the residence of the Jhansi royal family, it was home to Rani Lakshmibai in the years between the British annexation of the state in 1853 and the outbreak of the revolt in 1857. The building is now an Archaeological Survey of India protected monument and houses one of the better collections of Chandela sculpture outside of Khajuraho.
The ground floor holds medieval temple sculpture — apsaras, guardians, and deity images carved in the Chandela style, spanning roughly the 9th to 12th centuries. Upstairs, the galleries cover the Bundela and Maratha periods: coins, weapons, and personal effects associated with the Newalkar dynasty and the Jhansi court. The structure itself is worth studying — a blend of Rajput and Mughal elements, with carved brackets and arcaded corridors in better shape than much of the fort above. Opening hours are standard government museum hours; closed Mondays.