It was built in 1848 by the architect Andrei Stackenschneider on Frunze Street (formerly Katolicheskaya), in downtown Taganrog.

Anton Chekhov (as a student of The Boys Gymnasium) mentioned the palace in his stories Ionych, Mask and My life.

Later during occupation in 1918 it housed the German war hospital, and in 1919 – Anton Ivanovich Denikin's staff.

During the Occupation of Taganrog, the whole collection of Russian art, as well as 339 other art objects were looted by German occupation authorities[1][2] Alferaki Palace was renovated in 1991–1996 and is now open to public as the Museum of Regional Studies, though it is more commonly known under the name Alferaki Palace.

The basis of museum collections is formed with funds related to historical or artistic personalities.