It is part of Copenhagen's most exclusive shopping area, located northwest of Kongens Nytorv.

In the Middle Ages, it was a grassy path that passed through an area with private gardens and undeveloped sites.

[1] From at least 1689, a closed passageway, later referred to as Smids Gang, extended from the north side of the street.

[1] Another narrow alleyway, Peder Madsens Gang, connected Grønnegade to Østergade.

Its buildings were demolished in 1873 to make way for the wider street Ny Østergade.