This hall in "sanheyuan"; style (main hall in the middle, secondary structures on two sides), first built in the 15th year of the Reign of Emperor Qianlong (1711-1799) for his dealing with state affairs, was burned in 1860 and rebuilt in 1892. It is notable for its seclusion and harmonious arrangement. After the failure of the Reform Movement in 1898, Emperor Guangxu, who advocated the reform, was under house arrest here. The name came from a verse of Lu Ji in Jin Dynasty (265-316) "Jade spring with rippling water."

The chamber in the east of the hall was Emperor Guangxu's day room, the opposite one, his bedchamber. The desk for Guangxu was rosewood framed and agalwood centered, with exquisite carving. The surrounding screen was composed of two layers of glass painted with both traditional Chinese and Western landscapes.

The Reform Movement in 1898, also known as the "Hundred Days Reform," lasting 103 days, aimed at reforming the outdated feudal system and creating a new edict. Because of sharp disagreements between Guangxu's and Empress Dowager Cixi's parties, the movement failed. Emperor Guangxu was house arrested in the Hall of Jade Ripples, his six associate reformists beheaded. Once Cixi had controlled the Emperor's action and assigned eunuchs as his servants, the Hall of Jade Ripples once again became a hall for scheduled events.

Before the "Hundred Days Reform", two rocks were displayed side by side out of the gate of Jade Ripples Hall. They enjoyed a good name "Muzi Shi" (Mother and Son Rock), signifying the deep affection between the Empress Cixi and Emperor Guangxu. However, after the failure of this movement, boiling with rage, Cixi ordered to separate these two rocks to announce an end of their relationship. Since then, the poor Emperor has started his long house confinement life. These two rocks were the witness of those gloomy days.