This palace is one of the residences of the Spanish royal family. Originally a hunting lodge for the Habsburgs, it later became the main winter residence of the sovereign under the Bourbons. During the Franco dictatorship it was the official residence of Francisco Franco, and its main use today is to house foreign heads of state when they are on official visits to Spain.

Located in the Royal Site of El Pardo, it is managed by Patrimonio Nacional, the state body that administers the assets in the service of the Spanish Crown. It was built in the 16th century from a primitive 15th-century building designed by Luis de Vega. Its current appearance corresponds to the alterations and extensions undertaken in the 18th century, at the behest of King Charles III, in which the architect Francesco Sabatini took part.

In addition to its architectural value, the palace stands out for its interior decoration, representative of different periods and styles. The frescoes, which range from the late Renaissance of Philip II to the neoclassicism of Ferdinand VII and the late Baroque of the period of Charles III, are particularly noteworthy. The 18th-century tapestry collection is also of particular note, with five of Francisco de Goya's best-known series.

Both the palace and its small garden were declared an Asset of Cultural Interest in 1931 and 1934, respectively. Since 1983, it has been the Official Residence of Foreign Heads of State.

The origins of this palace date back to 1405, when Henry III of Castile ordered the construction of a royal house on Mount El Pardo, a place that the monarch frequented, given its rich hunting grounds. Henry IV, for his part, built a small castle on the site.