Built by the Portuguese in 1557 and presented to Raja Veera Kerala Varma of Kochi, the Palace was renovated in 1663 by the Dutch. The palace with a Bhagavathi temple in the central courtyard is built like the typical Kerala style mansion - the Nalukettu - the home of the aristocracy, nobility and upper classes, with four separate wings opening out to a central courtyard.

The double storeyed palace building which stands by the panoramic Kochi back waters has an exquisite collection of murals collectively covering over 300 sq. ft of its walls. The themes of these murals have been borrowed from the great Indian epics - the Ramayana and the Mahabharatha, and mythology and legends about the Hindu gods especially Guruvayurappan. Some murals depict scenes from Kumarasambhavam and other works of the great Sanskrit poet Kalidasa. Also on display are royal paraphernalia like weapons, swings and furniture which offer a glimpse of the lifestyle of the royal family.