The Old Palace was built in 1881–84 on the site of the former Small Palace of Prince Michael, on the corner of Kralja Milana and Dvorska (present-day Dragoslava Jovanovića) streets. It was designedby the architect Aleksandar Bugarski according to the ideas and instructions of King Milan Obrenović himself. In charge of its interior design was the commission composed of the architect Bugarski,the Great School professor Mihailo Valtrovićand the painter Domenico d’Andrea. All of theinterior decor and furniture was commissioned from Viennese art workshops.
The balance ofsymmetrical form and conventionally composed façades with a rich architectural ornamentation ofClassical, Renaissance and Baroque origin reflectedthe prevailing stylistic and architectural concepts, making the Old Palace the most sumptuous of allroyal residence erected in Serbia until then.