The palace on the banks of the Mandovi River is the oldest historical monument in Panaji.

The Portuguese rebuilt the palace of the Sultan of Bijapur, which was originally a fortress but was used as the viceroy's palace from 1759 to 1918. Now the secretariat and other government services of Goa are located there.

It was built on the banks of the river in 1500 by Yusuf Adil Shah mainly for recreation, but was fortified and later used as a strategic post to protect the Portuguese, who attached it to their artillery strongholds, as well as the first customs post where cargo from foreign ships.

In 1759, the palace was the official residence for most of the Portuguese Viceroys, who stayed here before boarding a ship on their way back to Portugal. A small chapel was built inside the palace in 1760 when the Viceroy moved to Panaji from Old Goa.
After 1918, the palace was used for the most part for government departments, including the offices of the Harbor Master and the Minister of Justice. The palace became widely known as the secretariat since Goa achieved independence, and served as the Territorial Union of Goa, Daman and Diu, now known as Goa Province. It is the administrative seat of the Provincial Legislative Assembly.