The residence was designed by Ahmed Dhoshimeyna Kilegefan, father of Mohamed Amin Didi in 1913, at the request of King Muhammad Shamsuddine III, for his son and heir, Hassan Izzuddine, Crown Prince of the Maldives.

It was famous throughout Male' as a place for merriment and gaiety with numerous music and dance performances organized by the young prince for his entertainment.

Izzuddin however soon became the victim of a smear campaign organized by his uncle Al Ameer Abdul Majeed Rannabandeyri Kilegefaanu and cousin Hassan Fareed.

Following Prince Izzudin's arrest, Muliaage remained abandoned and in disuse until the second World War, when it was used as the Ministry of Home Affairs by Mohamed Amin Didi.

Following the abolition of the Maldivian Monarchy in 1952, the new President Mohamed Amin Didi officially made Muliaage the Presidential Palace on January 1, 1953.

Following Amin's ouster later that year it became the Prime Minister's Office under Ibrahim Faamuladheyri Kilegefaanu after the restoration of the monarchy under Sultan Muhammad Fareed Didi.

After a long period of disuse, the first president of the second republic, Ibrahim Nasir Rannabandeyri Kilegefan once again declared Muliaage as the Presidential Palace in 1968.

Queen Elizabeth II and her husband, Prince Philip, the Duke of Edinburgh were entertained at an evening reception in 1972 by President Nasir during the couple's 2-day state visit to Male on board the Royal Yacht Britannia.