The palace was designed by the architect of the Emperor Theodore Marx, with the contribution of de Araújo Porto Alegre.

Subsequent to that period, it became, in sequence, the College of Luso-Brazilian (the United Kingdom of Portugal, Brazil and the Algarves) and the residence of former U.S. ambassador to Brazil Edwin V. Morgan (1865–1934), who served as ambassador from 1912 to 1933.

Isabel's eldest son, Pedro de Alcântara, Prince of Grão Para, renounced his position as heir in order to contract a marriage to a non-royal; the Palace then passed to his next brother Prince Luiz of Orléans-Braganza in his capacity as Isabel's recognised heir.

Since 27 December 2007, it has been the residence of Prince Pedro Carlos of Orléans-Braganza, eldest son of Prince Pedro Gastão of Orléans-Braganza; his second son was born in the palace, and his second wife died in residence.

It was registered in 1959 by the Brazilian National Historical and Artistical Heritage Institute.