Sponza Palace is one of the most beautiful in Dubrovnik, preserving its original appearance from the Middle Ages. The main architect of the building is Paskoy Milicevic. Sponza Palace was built in 1516-1522 in Gothic-Renaissance style. Its name is taken from the place where the rain water (sponge) has been collected, because it was built on it. The large rectangular building has a quiet inner courtyard in its heart. Ornaments on the porch and the facade of the palace were made by the Andric brothers, craftsmen from Korcula.

The original idea was for the building to serve as the customs office of the Republic of Dubrovnik. During its long history, Sponza has housed a number of government offices, such as the mint, the bank, the treasury, and the weapons. During the great earthquake of 1667, the palace was not affected.

Sponza Palace was not only used for economic activities, but also for cultural events.