It was the private residence of the Iraqi Royal Family between 1937 and 1958, during the reign of Faisal II.
The Palace was constructed at the cost of the royal family in the Al-Mansour suburb.
It succeeded the Al-Zuhour Palace as the private residence of the royal family.
In the 1950s, the New Royal Palace was built to replace it, but it was not inhabited before the monarchy was abolished.
The Al-Rehab Palace was the scene of the massacre on the royal family during the 14 July Revolution in 1958.