It is located on Vlašská street (formerly Wälsche Spitalgasse), in the Malá Strana district of Prague, Czech Republic.

In the eve of the Revolutions of 1989, the palais became the resort of numerous East German refugees who had reached Prague, climbed over the fence and camped out in the grounds.

[citation needed] While there were small groups hiding there occasionally since the embassy was opened in 1974, the number rose to several thousands in September, causing serious problems of supply and hygiene.

When Foreign Minister Hans-Dietrich Genscher in the evening of 30 September stepped on the balcony to announce an agreement on the refugees' voyage to West Germany, the crowd cheered on the keyword Ausreise (departure).

On 9 November 1989, the Berlin Wall fell, and the Czechs would succeed in the Velvet Revolution.These events are commemorated by a golden statue of a Trabant car on four legs in the garden of the embassy.