Peter the Great's Palace was located at the intersection of Rüütli and Pimeä streets, opposite the "Paks" bastion and the Coastal Gate. In 1944, the building was destroyed, and only its cellars have survived to this day.

The palace was a two-story stone house in the Baroque style. An oriel with a massive base adjoined the eastern side of the building, while a wooden gallery with carved latticework, supported by Tuscan columns, was attached to the southern side. From the southeast room on the second floor, one could access the rampart of the "Paks" bastion via a wooden bridge. In the mid-19th century, the rampart was demolished, and the bridge was dismantled in 1876 (according to other sources, in 1864).

The main entrance with a high porch was located on the northern side of the building, facing Rüütli street. The porch was adorned with four Tuscan columns and volutes with a wooden figure of Mars. The walls of the building were covered with reddish plaster, and the roof was tiled with a wrought iron weathervane.

On the first floor, there were six rooms. A wooden staircase led from the vestibule to the second floor, where Peter I's apartments were located. The second floor had nine rooms, including a hall. The floors were laid with oak parquet, and the ceilings were decorated with plafonds featuring allegorical images. It is believed that the ceiling paintings were created in 1708 by artists I. Odolsky, A. Zakharov, D. Solovyov, and D. Buralevsky.

The building was constructed in 1676 according to the design of Zacharias Hofmann the Younger for shoemaker Jakob Niman. In 1697, he sold it to Johann Lude, a carpenter or silversmith. In 1704-1705, architects I.M. Ugryumov and D. Trezzini combined this building with the neighboring house of Georg Hecht, creating the "Tsar's Chambers."

According to some sources, renovation work was carried out in the house in 1705, and in 1708 it was reconstructed as the residence of Peter I.

In the first half of the 19th century, the building was under the jurisdiction of the military ministry, housing the commandant's office and its archive (according to other sources, the city archive). In 1867, a German church school for boys operated on the first floor. In 1866, the house was transferred to the Narva Society of Citizens of the Great Guild, and a historical and memorial museum was opened there, based on the collections of the Narva Archaeological Society and the Palace of Peter I. The museum had a library and archive. After the society was dissolved in 1932, the palace became the property of the city of Narva. In 1933, the museum was merged with the Narva City Museum named after S. and G. Lavretsov. Part of the collection, evacuated to Leningrad in 1941, was returned in 1956. The rest of the collection was distributed among the museums of Tallinn, Rakvere, and Paide in 1945, but gradually returned to the Narva Museum starting in 1949.

During the retreat of German troops in 1944, the palace was looted and destroyed. Its walls stood until the late 1960s while project and restoration documentation was being prepared, after which they were dismantled. Only the cellars remain.