The palace was built in 1853-1856. Its located on Babigonskaya mountain, on the outskirts of the Lugovoy Park. The design of the palace was handled by Stackenschneider under the sketch of Nicholas I, who wanted to build a palace for his wife Alexandra.
Caryatids are made according to the Terebenevs project. The surviving granite pedestals were previously installed sculptures “Knights of the horses” by Klodt, which lost during the war of 1941-1945.
In different years after the revolution the palace served as a recreation center and a museum. At the present time, to the west of the palace on the site of a wooden pergola, a hotel has been built.