After the unification of Banat, Bačka and Baranja with Kingdom of Serbia in the process of creation of Yugoslavia, during a visit to Novi Sad in 1919, Prince Regent Aleksandar Karađorđević addressed the people from the balcony of the Bishop's Palace.

[3] The construction of a new palace with the design was completed in 1899 by architect Vladimir Nikolić, though it was officially signed by Ferenc Raichl due to concerns of favoritism.

The building's design reflects a combination of Byzantine, Eastern, and Serbian medieval elements, influenced by the architectural school of Theophil Hansen, under whom Nikolić studied.

[4] Its exterior features pseudo-Moorish decorative forms designed by sculptor Julijo Anika, contributing a distinctive ornamental character.

[4] Additionally, the palace is embellished with three eparchial coats of arms: one located on the front wall, another on the side facing the port, and a third within the courtyard.