The Hazratbal Shrine is located on the western shores of Dal lake (Bud Dal). Earlier the site was called Bagi Sadiq-Abad, laid by a Mughal noble Sadiq Khan in 1632 AD. It had a beautiful building (Baladari) in the centre having decorative naqash nigari in the walls and was named as Ishrat Mahal. When Emperor Shah-i-Jahan visited the place in 1634, he was highly pleased to see it and desire to call it as Ibadat Mahal. Necessarry changes were accordingly made in the buildingas per the orders of the Emperor Aurangzeb, that it housed the relic of Prophet Mohammad (PBUH). The relic was transferred from khanqah khwaja Naqashband Sahib, on the orders of Subidar Fazil Khan, (1699-01) governor Kashmir to avoid stampede deaths at he Khanqah, during the exibition of the relic for the public.
The relic is reported to have actually been brought to kashmir from Madina Sharief by Sayed Abdullah Sahib in I I I I. H. Sayed Abdullah transfered the relic to kashmiri merchants, khwaja Noor-ud-Din Sahib Ishawari at Bejapur, Deccan. Khwaja Sahib was arrested in the orders of Emperor Aurangzeb, in order to force him to part away with the whole relic. But khwaja Sahib coul not bear the separation if the relic. It is reported the he handed over the relic to his trustedservant (Ghulam Midanish) before his death, for taking it to Kashmir. Subsequently the relic was shifted from Khanqah Naqashband Sahib to the new mosque built for it, and the site wasgiven the name as Hazratbal by Fazil Khan governor. In 1793 Nawab of Deccan, Nawab of Ahsan-ul-Lah Khan who is reported to be orginally a kashmiri, constructed a big hamam adjacent to mosque fot the convenience of the devotees (zaireens) during winters. With changes and additions were made in the ziyarat in 1851, 1942 AD. The relic now has been kept in a newly built grand mosque called "Madina Sani". It was built under the direct supervision of Sheikh Mohammad Abdullah in late sixties (1968) to late seventie (1979). The surroundings of the mosque have been further cleared of all old structures and butified further to accommodate more number of zaireens. Considering the popularity of the ziyarat with the people in the valley, having location in the immdiate neighbourhood of prestigious institutions like Nationa Institute of technology (NIT) and Kahsmir Universit (KU), its expansion, beautification and improvement programme need to be contimued further by the Waqaf (endowment) Board in the collaboration with State goverment.