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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The Reform Movement in 1898, also known as the "Hundred Days Reform," lasting 103 days, aimed at reforming the outdated feudal system and creating a new edict.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.