The Portuguese explorer Vasco da Gama received a warm welcome from the rulers of Kochi when he landed at Kappad in 1498. The Portuguese were allowed to build factories. The Palace was constructed by the Portuguese in the mid-16th century sometime around 1555 and presented as a generous gift to the King of Cochin, Raja Veera Kerala Varma. Many sources mention that it was built and gifted to the King to mollify him and make amends for plundering a temple in the area. While others opine that it was a goodwill gesture to secure trade privileges. Several attacks inflicted by the Zamorins of Calicut were warded off by the Portuguese and eventually the Rajas of Cochin practically came under the vassalage of the Portuguese. In 1663 the Dutch took over. They conducted some extension and major renovation works in the Palace. Renovations were also made subsequently by the Rajas that gave it a more Hindu texture which over the centuries and the Palace has emerged as one of the most significant places that illustrate primitive Hindu Temple Art. The Kings of Kochi used this Palace as royal residence for around two centuries and held significant rituals and functions like the coronation ceremony. It was declared as a Government of India protected monument in 1951. The upper floor of the double storied building that include the bed chamber, coronation hall, dining hall and ladies chamber among other rooms holds the present museum that was set up in May 1985.