Leaving the kitchen exhibits, one approaches the "Bab-us saadet", The Gate of Felicity. This is the entryway to the Third Courtyard and this area was strictly reserved for the use of high ranking officials and palace children. The gateway was originally built by the time of  the Conquerer and restorated in the late 16th C and redecorated in rococo style. In the holidays, the Sultan sat in front of the gate on his gold and emerald throne subjects and officials. There is a little stone with a hole in the middle, it is the "Sacred Standard" in which the flag of Ottoman Empire was centered. After the conquests, the flag was brought here and put in its place with ceremonies.

Just beyond the threshold of the Gate of Felicity stands the "Arz Odasi","The Audience Hall of the Sultan". In this room, the Sultan received the reports of the Council Meetings presented by the Grand Vezir(Prime Minister) and high officials to make the final decisions. The Sultan received the foreign ambassadors in this room. Lord Byron or many French Ambassadors were accepted in this room. The tiles on the two sides of the door of the room are 16th C splendid Iznik Tiles. The Sultan sat on his golden and emerald decorated throne whereas all the visitors sat on the floor (now displayed in Treasury Section). The room was decorated with precious stones. The little fountain on the right of the door was for making noise during the meetings so that nobody could have heard what the subject of the meeting was.

The Third Courtyard included the Palace School, The Imperial Costumes, the Treasury and the Holy Relics section. At the palace school, the most talented boys were taken and given a very good training for being a good governors and bureaucrats of the future.