Historically, Aga Khan Palace of Pune holds great significance as from 9th August 1942 to 6th May 1944, this palace was the prison for Mahatama Gandhi, his wife Kasturba and his secretary Mahadev Bhai Desai though the last two passed away in between their captivity at the Aga Khan Palace at Pune. Both of them have memorials in their name in the same complex near Mula river and everyday several visitors visit them.
In 1969, the Aga Khan Palace at Pune was donated to the Indians by Aga Khan IV as a mark of respect to Gandhi and his philosophy. Today the Aga Khan Palace in Pune also houses a memorial on Gandhi where his ashes were kept. The historical palace also hosts a shop that deals in khaadi and hand loomed textiles.