In 1903-08, on the place of older palace, Archduke Leopold Salvator had the new palace in the Second Empire style built, according to plans of the architects Eduard Frauenfeld and Ignaz Sowinski.
During the World War I and World War II the castle was made a military hospital. A special education facility for girls with behavioral problems was operated from the 1950s until 1977.

Since May 2003 the chain Austria Trend Hotel refurbished Schloss Wilhelminenberg and re-opened it as a four-star hotel. It boasts 87 elegant rooms, a restaurant and a library, a terrace offering a beautiful panoramic view of Vienna, and a 120,000 mē park, which is open to the general public - ideal for walking around and enjoying some great views over the city. Castle Wilhelminenberg has become a popular location for large wedding parties and other celebrations.