The new imperial palace was built on the initiative of Nicholas I from 1838 to 1850 on the site where the ancient Grand Duke's palace of Ivan III once stood, and later the palace of Empress Elizabeth Petrovna, constructed in the 18th century. The design and construction were carried out by a group of architects, including N.I. Chichagov, V.A. Bakarev, F.F. Richter, P.A. Gerasimov, F.G. Solntsev, and others, under the guidance of K.A. Ton, known as the founder of the 'Byzantine-Russian style.'

The palace complex, named the 'Grand Kremlin Palace,' included both the new building and the preserved structures from the late 15th to 17th centuries, which were previously part of the Grand Duke's and Tsar's residence. Among them were the Faceted Chamber, the Golden Tsarina's Chamber, the Terem Palace, and the palace churches. After the completion of the Armory in 1851 and the adjoining Apartments building to the north, connected to the palace complex by an aerial passage, a unified ensemble of the Grand Kremlin Palace was created, compositionally and stylistically linked.

K.A. Ton largely reproduced the layout of the ancient ensemble, while the facades of the new buildings developed architectural themes from the old structures. The arcade of the first floor of the palace resembled the undercroft of Alevis, the terrace above the arcade echoed the old galleries, and the winter garden above the new passage reminded one of the hanging gardens of antiquity. The window openings on the second floor, the pilasters between them, and the central part with kokoshniks and a dome resonated with the architecture of the Terem Palace. However, the facades of the building lacked the picturesque quality inherent to the Terems due to their dryness and monotony.

Nevertheless, K.A. Ton's work was marked by innovation: he used unique large-span lightweight brick vaults, metal truss structures, and new building materials such as cement for decorative castings, which were highly valued by his contemporaries.

The internal layout of the palace consists of about seven hundred rooms, including the main vestibule with a staircase, five ceremonial order halls, the empress's reception rooms, the living quarters of the imperial family, and service rooms on the first floor. The interiors, designed in various styles from 'Renaissance' to 'Byzantine-Russian,' are distinguished by elegance and high-quality workmanship, allowing the palace to be referred to as a museum of Russian palace interiors.

In 1933-1934, the Alexander and Andrew Halls were transformed into the meeting hall of the Supreme Soviet of the USSR, losing their splendor. In 1994-1998, by the decision of the President of the Russian Federation, the halls were restored.

Today, the entire complex of the Grand Kremlin Palace, except for the Armory, serves as the main residence of the President of the Russian Federation.