It takes its name after Palæhaven, an entertainment venue which had been established in the former garden of the Thott Mansion on Kongens Nytorv in the second half of the 19th century.

[1] The street is built over with four large properties all of which have been designed in the Historicist style with ample use of decorative elements and bay windows.

The two buildings on the corners with Bredgade were designed by Emil Blichfeldt on collaboration with Gotfred Tvede.

A stucco dragon above the door at the corner carries a round turnet tipped by a copper spire.

[3] The two buildings in the Store Kongensgade end of the street were designed by Philip Smidth.