It was established in 1927 and it is just 200 meters away in the south of the Grand Trunk Road, behind the famous historical Qila Balahisar. Famous Masjid Muhabat Khan,Ander Shehr bazaar, Qissa Khawani bazaar and Khyber bazaar is across the road of LRH. LRH is just outside historical wall in the jurisdiction of cantonment board. The anecdote of the hospital of its coming into being is that His Excellency Lord Reading, viceroy of India from 1921 to 1926, happened to visit Peshawar. This was the highest office in the British India ever attained by a Jew. He was accompanied by his spouse Lady Reading Hospital.She was fascinated by the view of the city from Qila Balahisar where they had lodged.She expressed her desire to see the city. She was provided horse in compliance with her desire. She visited the city. As she was returning to the fort the horse took the fright causing fall of the Lady from the horse back. This resulted in some injuries to the Lady Reading. Non-availability of medical aid instantly made her unconscious. She was rushed to Agerton Hospital where the facilities were scanty. Unable to deal with her injuries, she was shifted to the Royal Artillery Hospital now called "Combined Military Hospital" (or CMH) Peshawar, where she was given proper treatment. The immense impact of this incident on her made it imperative to construct a hospital. On retirement of Lord Reading in 1926 she came to Peshawar from Delhi and campaigned to construct a standard hospital in place of Agerton Hospital. She donated Rs.52,000. (Fifty two thousand) for the construction. This new hospital was subsequently named Lady Reading Hospital. Later on, the hospital was given into status of District Headquarters hospital with 150 beds and in 1930 it was a 200-bed hospital. Doctor Khan Bahadur Abdul Samad Khan became the first Medical Superintendent of the hospital. Doctor Muhammad Ayaz Khan was appointed the first Administrator of the hospital in 1973. This hospital became affiliated to Khyber Medical College in 1955 with medical, surgical, ENT, Eye, and T.B. wards. According to a 2008 estimate, its out-patient clinic sees above 2500 patients per day and the casualty cases at the Accidents and Emergency department number more than 1500 or 1800 per day. Since 1928 and in its annals of 76 years, prominent doctors have cured ailing humanity. Dr. Hakeem Ullah Jan and Khan Bahadar Abdus Samad Khan are two great names to be mentioned whose services earned them the respect of the people of Peshawar. In recent days Lady Reading Hospital has been the center point for providing prompt medical aid to the persons injured in the current bomb blasts in Peshawar city.