It was designed by Paskoje Miličević and originally served as the Republic of Ragusa's customs house, with goods checked and stored in the courtyard. Over time it also housed the mint, the treasury and a learned society. It was one of the few buildings to survive the 1667 earthquake largely intact.
Today the palace holds the Dubrovnik State Archives, with documents going back centuries, and a memorial room for the defenders of the city in the 1990s war. The courtyard is often used for exhibitions and concerts.
Luža Square around it gathers several landmarks: the City Bell Tower, Orlando's Column, Little Onofrio's Fountain and the Church of St Blaise. It is the natural end point of a walk down the Stradun from Pile Gate.
