The palace replaced an earlier wooden palace, commissioned by Abdulaziz and completed in 1874. The ceilings and the interior partitions were made of wood, the walls were covered by marble. Abdulaziz didn’t lived to much in his magnificent palace. Five days after he was deposed he had found dead in Ciragan palace. About three decades Murat V. lived here under house arrest until his dead 1904. After two months the palace was used as parliament, same year it was fired in 1910.

In 1989 the palace was restored and a new modern hotel complex added next to it in its garden. Today Ciragan Palace serves as luxury suites for the five star seashore, Kempinski Hotel.