The Episcopal House is located in the western part of the Kremlin, next to the Resurrection Arch. On the west side, it adjoins the Kremlin wall, and on the east, it connects to the Metropolitan Chambers.

The building was constructed between May 1911 and 1912 on the site of an earlier one-story stone structure, presumably dating back to 1671. The old building was dismantled, and in its place, a three-story structure was erected. The project was developed by academician of architecture Preobrazhensky, and the construction was overseen by architect N.K. Ragulin. The customer was the Novgorod Archbishop Arseny.

The house was intended for the spiritual consistory, archives, book storage of St. Sophia Cathedral, the diocesan antiquities repository, as well as for the accommodation of clergy traveling through. The building housed a large hall for religious and moral readings, designed for two thousand people. After the October Revolution, it was used as a theater and hosted various conferences and ceremonial meetings.

During the Great Patriotic War, the building suffered significant damage. German occupiers turned the theater into a stable, breaking large gates in the walls. Restoration work was carried out from 1945 to 1947 under the direction of the head of the Novgorod Restoration Workshop, S.N. Davydov. The building is designed in the style of pseudo-classicism. Although the monument does not possess great scientific-historical or artistic value, it holds significant urban planning importance as one of the tall structures of the Kremlin and one of the buildings flanking the main entrance. However, the extension above the third floor distorts its appearance and the overall silhouette of the Kremlin.