The oldest part of this building, constructed in the late 16th century, was first the city hall of Luxembourg City until 1795. Since then it has had several extensions and renovations over the years. From 1817 the palace became the residence of the Governor and the headquarters of the Luxembourg Government. Then from 1890, the palace became exclusively the residence the Grand Duke and family. However during the German occupation in WWII, while it was used by the Nazis as a concert hall and tavern, the palace was considerably damaged and much of its furniture and art was ruined. When the Grand Duchess returned from exile in 1945, after refurbishment, it again became the home and official residence of Luxembourg's heads of state, the Grand Dukes, and remains so today.
The palace is in the city centre on Rue du Marche-aux-Herbes.