The palace was built by Emir Bashir Shihab II in the period between 1788 and 1818. It was the emir’s residence until 1840. Afterwards the building was used by the Ottoman authorities as the government residence. Later, under the French Mandate following World War I, it was used for local administrative purposes.
The General Directorate of Antiquities restored the palace after it was declared a historic monument in 1934. After independence in 1943, the palace became the summer residence of the President of the Republic and it hosts yearly the International Beiteddine Festival.