The palace, built between 1802 – 1805, was modelled after ballet-master Louis Gallodier's Italian villa in Drottningholm by architect Carl Christoffer Gjörwell on appointment by King Gustav IV Adolf for the royal children.

In 2009, it was announced by Prime Minister Fredrik Reinfeldt that the rights of disposal to the palace would be transferred back to the royal court to be used by Victoria, Crown Princess of Sweden and her husband, Prince Daniel, Duke of Västergötland, as a wedding gift in 2010.

After the death of Therese the palace was put into disuse by the members of the royal family until the newly wedded couple Hereditary Prince Gustaf Adolf and Princess Sibylla relocated there in 1932 after some thorough renovation had been conducted.

In the wake of the sudden death of the Hereditary Prince in an KLM DC-3 airplane crash at Copenhagen Airport on 26 January 1947, the widowed mother and her children ended their full-time residency at the palace.

On 23 April 2009 Prime Minister Reinfeldt announced that the disposal rights to Haga Palace would be transferred back to the royal court as a wedding gift from the government in light of Crown Princess Victoria's approved marriage to Daniel Westling in June 2010.