The palace stands on land that was once owned by the Ponzone family, but its current appearance is due to the impressive work carried out by Marquis Giuseppe Sigismondo Ala Ponzone, the last descendant of the family, between 1829 and 1842 under the guidance of architect Carlo Visioli. These included the renovation of the façade in neoclassical style, the construction of the new staircase and the refurbishment of the noble rooms on the first and second floors, with work by the painters Gallina and Moriggia.

According to the Marquis's will, the palace was to serve as imperial accommodation for the Casa d’Austria, but it was only used for this purpose on a couple of occasions.
In 1888, the first exhibition of the Marquis' collections was organised in six rooms on the first floor. The museum and the Royal Industrial School (established according to the Marquis' wishes) occupied the palace until the mid-1920s. The museum and school were subsequently moved to more suitable buildings, and the palace became the headquarters of the Fascist party and took the name Palazzo della Rivoluzione, which it retained until the end of the Second World War.

It is currently home to municipal offices.