Marghzar is a small town situated at about 13 kilometers away from Saidu Sharlf. It is famous for its White Marble Palace, built by the Wali-e-Swat in early 1940′s. The palace now serves as a hotel. While going towards Marghzar, a road turns to Islam Pura, which is famous for its woodwork, shawls and blankets.
The White Palace at Marghazar was the summer residence of the Wali of Swat, Jehanzeb. The palace, built in 1940 by the first king of the Swat Valley, Mian Gul Abdul Wadood, also played host to Queen Elizabeth. Located at 7,000 feet above sea leavel on Marghazar Hill, it was later converted into a tourist resort.