This sarai stands to the south of village Mahlian Kalan on Nakodar-Kapurthala road, 12 km from Nakodar. It is said to have been built by Ali Mardan Khan during the reign of Shah Jahan about CE 1640. The sarai measures 180meterx172meter and has an imposing east and west sides with gateways, each strengthened at either corner by an octagonal bastion topped by a domed pavilion. The large entrance arch has a deep recess on either side at the ground level above which are two storeys of triple arched openings with projecting balconies. The whole surface is embellished with arabesque designs executed in yellow, orange, green, turquoise, indigo and white glazed tiles. The domed bastions also had similar decorations of which traces remain. According to the Persian inscription above the western gate, the Sarai (Nur-Sara) was built under the order of Nur Jahan Begum. The work started in A.H. 1028 (CE 1618-19) and was completed in CE 1620-21.
In view of its historical importance, it was declared protected as a monument of national importance vide Notification No. PN, 4687 dated 18-02-1919.