This palace was built by the order of Reza Shah Pahlavi. It is said that the plot of the palace was designed by the Shah himself. The architect of this palace was Leon Tadousian, a very famous Iranian-Armenian architect.

The dome of this palace was inspired by the dome of Sheikh Lotfollah Mosque in Isfahan. The construction of this palace started in 1937. The acre of this palace is 35462 square meters.

This palace was first the place for the residency and work of Reza Shah. Before the legislation of National Treasury, the royal jewelry was transferred from Golestan Palace to this Palace and was kept in the basement.

During the reign of Mohammad Reza Shah, this palace was turned into the king's official office and a place where meetings were hold. Mohammad Reza Shah's wedding with Fawzia and his engagement with Farah was hold in this palace.

Due to the terror attempt of the king in this palace, his office was transferred to Sahebqaraniyeh Palace and after that Marmar Palace was turned into a museum. In this museum the king's regimentals and his hat with a bullet in it from the terror attempt were hold.

The museum was closed after the revolution and after a few years it was used as expediency council. This palace was repaired in 2008.