Brazilian and Argentine forces sacked Asunción in January 1869, damaging the palace's exterior and looting ornaments and furniture.

President Juan Gualberto González, on taking office in 1890, strove to restore the palace and complete what had been left undone in 1867, but a coup halted his progress.

Juan Bautista Egusquiza finally finished the work in 1894 and became the first head of state to establish his administration and residence there.

Palacio de los López continued on as the seat of government throughout the latter 20th century under the despotic rule of President Alfredo Stroessner, until the restoration of democracy in 1989.

These included stones from the quarries of Emboscada and Altos, woods and odrajes of Ñeembucú and Yaguarón, bricks of Tacumbú, and iron pieces molten in Ybycuí, among others.