It was the residence of the Princes and Dukes of Anhalt from 1244 to 1847, and now belongs to a foundation for the preservation of sites in Saxony-Anhalt.

The composer Johann Sebastian Bach was employed there by Leopold, Prince of Anhalt-Köthen.

Since the 19th century, the palace has housed an important bird collection which was sold to Frederick Ferdinand, Duke of Anhalt-Köthen by the ornithologist Johann Friedrich Naumann.

[2] The town of Köthen was an important trade hub in the realm of the House of Ascania during the reign of Albert the Bear.

Johann Sebastian Bach worked in Köthen from 1717 to 1723 as Hofkapellmeister of Prince Leopold.

The court was Reformed, therefore sacred music was not required, but Bach composed a series of secular cantatas such as Der Himmel dacht auf Anhalts Ruhm und Glück, BWV 66a, for the prince's birthday, and Die Zeit, die Tag und Jahre macht, BWV 134a for New Year's Day.

[7] The outer area of the palace is made up by the Marstall (Royal stable), Reithalle (Riding hall), and the Remisenhaus (coach house).

The building is two stories tall and has on its exteriors mansard roofs and risaliten emblazoned with an escutcheons for the stable gates.

[11] The Ludwigsbau (Ludwig building) was built in the style of Upper Silesian castles and has Italiante influence in its plan.

[8] The upper floor of the Ferdinandbau houses the Naumann-Museum, an ornithological museum dedicated to Johann Friedrich Naumann founded in 1835.