The palace was first built by the Knights of St John of Jerusalem. After its dereliction during the Turkish occupation, it was largely destroyed by the explosion of the powder magazine in 1856. The restoration of the palace with many alterations was carried out between 1937 and 1940 under the supervision of the Italian architect Vittorio Mesturino and the building was adorned with murals by P. Gaudenzi and F.Vellan.