The dinner was hosted by the Union government as part of the ongoing Global Entrepreneurship Summit (GES) 2017.
Famous for its huge Nizam-era table which can seat 101 guests at a time, the palace-turned-plush hotel is one the key landmarks of the city.
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A separate dinner was arranged for around 1,500 delegates of the GES on the lawns of the palace.
Modi, on his day-long visit to the city today, inaugurated the first phase of the Hyderabad Metro Rail at Miyapur station here, and the GES at the Hyderabad International Convention Centre.
A senior police official said a five-tier security has been provided to Ivanka, who arrived in the city in the early hours today and addressed the eighth edition of the GES.
She is scheduled to leave the city tomorrow evening.
Telangana DGP M Mahendar Reddy had said earlier that a total of 10,400 security personnel drawn from various wings have been deployed as part of security arrangements for the summit.
It includes personnel from Traffic Police, Central Armed Reserve, Telangana State Special Police, Intelligence Security Wing, commandos of Greyhounds anti-Naxal force and the elite OCTOPUS anti-terror force.
More than 2,000 police personnel have been deployed around the Falaknuma Palace, the official said, adding the police conducted a door-to-door search at 3,500 houses in surrounding areas and sanitised the areas in the run-up to the summit.
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