During another period of seclusion work in 1935, Baba asked Padri to build a cabin for Him on the hill. It had to be easily accessible to both the women's ashram and the men mandali; the women's ashram was strictly sequestered from the outside world. So Baba chose this site east of the crypt platform just outside the ashram compound gate. Baba wanted something that would stand up to the severe weather and be insect-proof, so He gave Padri permission to build a solid stone structure. However, Baba kept shortening the time for completion. As the foundation was being completed with stones salvaged from the Post Office, Baba said that the cabin was to be ready in one week. So Padri and others worked intensively and constructed the cabin using teak wood with sheet metal siding. On the evening of July 15th 1935, Baba went into seclusion in the cabin.

While Baba was in seclusion, one of the women mandali, Valu, would bring Baba food and tea that had been prepared by Mehera. It was strictly forbidden to look inside any place where Baba was doing His seclusion work. However, one day Valu brought Baba’s tray of food at the appointed time and found the cabin door closed. Believing that the wind had blown the door shut, Valu pushed it open and saw Baba inside, engrossed in His inner work. As Baba looked up, His powerful gaze overwhelmed Valu and her eyes became painfully bloodshot, and she was blinded for three days. This incident is an example of the power of Meher Baba’s seclusion work.

From the time it was completed, Baba’s Cabin became His personal quarters whenever He would stay on the hill. It was here that He last spent a night at Meherabad, on December 31st 1947, after celebrating Mehera's 41st birthday.

The Rahuri Cabin was originally constructed in 1936 in Rahuri, a town about 40 kilometers north of Meherabad. Baba had a free dispensary and His first ashram for mad persons and a few masts there. It served as His personal quarters for some months in Rahuri. But due to trouble with the landlord, Baba shifted the ashram to Lower Meherabad in May of 1937. The dispensary was set up where the Main Bungalow is now, and the mad ashram was established just west of where the Meher Pilgrim Center is located. Baba had Dr. Ghani dismantle the cabin and reconstruct it on this site using most of the original materials. Baba used the Rahuri Cabin for seclusion work and interviews during the late 1930s and 1940s. The masts, Lakhan Shah, Ali Shah, and Mohammed also stayed here at different times.