Hernán Cortés ordered the destruction of the palace of the governor Moctezuma Xocoyotzin in 1523 and the building of a new palace to house the see of the viceroyalty on the same spot. In the colonial period, it was used as accommodation for the representatives new Spanish power and it was first inhabited by the second Viceroy Luis de Velasco; hence the attention to detail and the palatial style of the building.

At that time it was remodeled to accomodate courtrooms inside and outside the Royal Court prison. Its facade and purpose has changed over time, from 1821 it became the National Palace to house the legislative, executive and judicial powers.

In the first half of the 20th century, Diego Rivera was commissioned to create a mural with the aim of bringing art and history to citizens in an era with high rates of illiteracy. Thus the impressive work Epopeya del Pueblo Mexicano was created, drawn on the two staircases and walls of the north courtyard.

The building houses the site museum of the Parliament. Also, Benito Juarez's house-museum and the gardens of the Empress were also preserved and, if you look carefully, you can see the ancient pyramids which lie beneath the foundations of the palace.