[1] It was built in various stages in the late 16th century to house knights of the Order of Saint John from the langue of Italy, and it originally had a Mannerist design by Girolamo Cassar and several other architects.

This building was eventually incorporated into the Grandmaster's Palace, and the present auberge began to be built in Strada San Giacomo (now Merchants Street).

[5][6] There is no documentation recording the construction of the third Auberge d'Italie, but work began in 1574[7] and the building was inaugurated in September 1579.

Apart from Cassar and Farrugia, several other architects and master masons were responsible for the construction of the auberge, including the engineer Francesco Antrini.

The façade was remodelled by Mederico Blondel, and a third floor was constructed at the expense of Grand Master Gregorio Carafa.

Being located opposite Napoleon's residence at Palazzo Parisio, the auberge was converted into the French military command.

The museum closed down during World War II, and the building received two direct hits on 7 April 1942.

[22] In January 1971, the Superior Courts of Justice and the School of Arts vacated the building after moving into a new courthouse which had been built on the site of Auberge d'Auvergne.

[13][23] The building was to be converted into an examination hall, but in August of that year, it was assigned to the Posts and Telephones Department.

After extensive renovations, the auberge opened as the General Post Office on 4 July 1973, taking over the role from Palazzo Parisio.

[24] Plans to move the National Museum of Fine Arts from Admiralty House to Auberge d'Italie began in 2013.

[25] In September 2014, it was announced that the move will occur and the new museum would be called MUŻA (from the Maltese acronym Mużew Nazzjonali tal-Arti).

[30][31] Another considered but refuted plan was to reopen the probable original entrance, that would have had an added front staircase on Piazza De Valette.

[34] Auberge d'Italie was originally built in the Mannerist style, but the building acquired a mainly Baroque character due to the 1680s renovation.

[35] It has a symmetrical façade with an ornate Baroque centrepiece above the main entrance, containing a bronze bust of Carafa and his coat of arms, together with a marble trophy-of-arms and a Latin inscription which reads:[13][36][15]

[note 1] The centrepiece is thought to have been built by the architect Mederico Blondel based on a design by Mattia Preti.