Islamnagar is a panchayat village in the Bhopal district of Madhya Pradesh, India.  It is located in the Huzur tehsil and the Phanda block.

Islamnagar was a Rajput town, called Jagdishpur until taken by an Afgan (Dost Mohammad Khan) in 1715. He founded the Bhopal State with Islamnagar as its capital. Fortifications were built within them are a palace, gardens and a charming village. The palace has an arched gateway leading to the Chaman Mahal, Rani Mahal and Gond Mahal. The Rani Mahal (Queen's Palace) has a rectangular garden and deep arcades. The Chaman Mahal has a textbook example of charbagh with pools and fountains. The palace has a fine hammam (steam bath) and a balcony looking over the river to the tombs of Nawab Yaar Mohammad Khan and Nazar Mohammad Khan. 

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