During the reign of Fathali Shah and by his order, a great throne was made under the supervision of Nezamoldoleh Mohammad Hossein Khan Sadr Isfahani, the governor of Isfahan, using gold and loose stones from the treasury. As a motif of the sun, encrusted with jewels, was used on the top of the throne, it became known as the Sun Throne. The throne was later called the Peacock Throne, after Fathali Shah's marriage to Tavous Khanoum Tajodoleh who was known as Lady Peacock because her first name, Tavous, is the Persian word for a peacock.

Up til 1980 the Sun Throne was on display at the Golestan Palace. In 1980 it was decided to move it to the vaults of the Iranian Crown Jewels at Iran's Central Bank where it is now on display.