The Smoke Room, also known as the Indiana Room, features valuable works of art, such as the neo- rococo chandelier in the 19th century and the low relief "Cholera Morbus" by Vítor Bastos. The name of Sala Indiana derives from its decoration, made up of Teca furniture, of Indian manufacture here placed by initiative of the Architect Raul Lino, in 1940;
It is the first great room of the New Palace. The ceiling is of Islamic inspiration and reveals a taste for Mudejar art. The neo-rococo chandelier of the mid-nineteenth century represents, in glass, a creeper Glória-da-Manhã with clusters of grapes. Indian furniture was purchased in 1940.