Its design imitates Baroque architecture and its southeastern corner (today its left-hand entrance) has an onion-dome-topped tower.
During construction Frederick Augustus's wife Princess Elisabeth Anna of Prussia (1857–95) died, and the new building was named in her memory.
On 24 October 1896, Frederick Augustus moved into the new residence with his family and his second wife Duchess Elisabeth Alexandrine of Mecklenburg-Schwerin (born 1869, daughter of Frederick Francis II, Grand Duke of Mecklenburg-Schwerin).
However, revolutionaries forced the Grand Duke to raise the red flag from the flagpoles of the Palais and the Schloss on 8 November 1918 and three days later he renounced his dukedom and retired to his Schloss Rastede at Rastede.
The kitchen wing to the east of the main building was demolished in the early 1960s to make room for the new "Schlosswall" street, though the Palais was now sited right on this new road and thus gained a new entrance.