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Islamnagar is a panchayat village in the Bhopal district of Madhya Pradesh, India. It is located in the Huzur tehsil and the Phanda block. Formerly a fortified city, Islamnagar was the capital of the Bhopal princely state for a brief period. The ruins of the palaces built by Bhopal's founder Dost Mohammad Khan still exist at the site.