The temple is an important symbol of the Holkar Princely State. Shri Mahalakshmi Temple was built by H. H. Malhar Rao Holkar (II) in 1732. In 1933, the three-storey building of the temple had engulfed in a huge fire, but was renovated in 1942. The entire temple is made of wood.
This ancient temple had some special significance in Holkar Princely State. Officers and all other employees used to visit the Mahalakshmi Temple before entering the offices of the Holkar Empire in Rajwada. And now, thousands of devotees visit the temple, every day.
In connection with Shri Mahalakshmi Temple, called the Pride of Rajwada, Holkar-era historian Mr. Ganesh Matkar, says that the idol worshipped in this ancient temple is of great importance, along with the Malhari Martand Temple.