Iqbal Library, Bhopal was established in 1939 and gradually became one of the leading literary and scholarly libraries of Central India. The library commemorates Allama Muhammad Iqbal's close association with Bhopal. Iqbal visited the city on several occasions, stayed there for extended periods for medical treatment and other reasons, and composed a number of his poems during these visits. He also dedicated his celebrated work Zarb-e-Kalim to Nawab Sir Hamidullah Khan of Bhopal. The building housing the library, located opposite Shish Mahal, is the very place where Allama Iqbal stayed during his visits to Bhopal.

At one time, the library housed nearly 80,000 books, including rare works of Urdu literature, bound volumes of literary journals, and other valuable scholarly publications. Despite limited resources, this non-governmental institution has continued its academic and literary services through the support of volunteers and scholars.

In recent years, the library suffered severe damage due to heavy rains and flooding, resulting in the loss of a large portion of its collection. To preserve this valuable heritage, Rekhta Digital Library has digitized a major part of the library's holdings, making this rare literary treasure accessible to readers and researchers around the world.