Nikolayevsky Palace was one of several St Petersburg palaces designed by Andreas Stackensneider (1802–65) for the children of Nicholas I of Russia. The palace of Grand Duke Nikolai Nikolaievich of Russia forms part of a sprawling complex incorporating a palatial church, a manege, and several outbuildings.

Grand Duke Nikolai Nikolayevich Snr, the first owner of the Palace, was the third son of the emperor Nicolas I and his wife Alexandra.

In 1851 when the young Grand Duke reached his official maturity a bid was announced, and the project of the palace submitted by the famous architect Andrei Stakenschneider was the best one.

The site approved for construction was Annunciation sq. (now – pl. Truda). By the 40th of the XIX century that place had turned into a highly fashionable area, the favorite place of promenade in St.Petersburg for representatives of the Higher Society.

Nikolai Nikolayevich had waited patiently for almost 10 years – longer that any other grand duke – until construction of his palace was completed. Only in 1861 he moved in with his wife Alexandra Petrovna (the princess Frederica-Wilhelmina of Oldenburg). Despite of mixture of several architectural styles – renascence, baroque, classicism, etc. – the Palace makes everyone feel what the perfect harmony is. The magnificent gala staircase is considered to be the great architectural achievement of Stakenschneider. The Palace's Church of Our Lady of Sorrow is worth a special attention. The image of the church was inspired by one of the temples in Rostov Velikii after the Grand Duke had visited that ancient Russian city. The location of the church is unique: only in this palace the family church is located right on the gala staircase.

One of the main peculiarities of the Palace is its special “homy” atmosphere which the official Grand Duke’s residence managed to retain.
The Grand Duke had to leave his home from time to time due to his military services: as the Inspector General of Cavalry and Commander-in-Chief of the Russian Armies he took part in the Crimean war, Russian-Turkish war and other military campaigns where he was said to demonstrate remarkable bravery. He showed the importance of reorganization of the Russian army including the development of engineering and cavalry.

When Nikolai Nikolayevich was not preoccupied with his military responsibilities he gave a lot of attention to various social affairs and events. He was the most devoted admirer of theatre (especially of young actresses and female ballet dancers). Being kind, cheerful and generous he inspired and arranged parties, balls, dinners – and never missed the opportunity of pleasing his guests with exquisite cuisine, rare wines and joyful performance. It should be mentioned that Nikolai Nikolayevich was fond of Russian culture and Russian traditions of hospitality, that’s why balls and receptions were often held in Russian style, where “all costumes were magnificent, graceful and historically true, and some accessories survived from the ancient times”. In accordance with the ancient Russian ceremony of hospitality the hosts were greeting their guests on the top of the gala staircase with Bread and Salt.