The palace is located on the site of the Fortezza Augustan, the residence of condottiero Castruccio Castracani, where also was his palace, perhaps designed by Giotto.
After a period as the residence of Duchess Elisa Baciocchi, it was the seat of the Lucchese state government until the Unification of Italy in 1861, when it was acquired by the province of Lucca.