Built in 1920, this monument was originally used for religious classes and to teach Muslim children to read the Quran. It was believed that the building materials used included honey, egg white and rocks. After being destroyed by a flood in 1986, it was rebuilt in 1999 without any structural change.

This building which is of historical significance is located on Pulau Duyong Kecil. Kota Lama Duyong is an architectural wonder of Terengganu in the 1920's.It was built by a senior official in the Terengganu State Administration, Dato'Biji Sura. While most houses were made of wood, Kota Lama Duyong was constructed with bricks and wood. The house is surrounded by fortifications and hence the name Kota Lama or Old Fort. Originally painted blue and yellow, it dates back to the 1920s.

The building was recently restored by the state museum with the blessing from its present owners, the great great grandsons of the renown Tok Sheikh Duyong, the local Islamic scholar and guru.