The most active construction on the territory of the current Kremlin, including the Archierarchical House and the Sophia Cathedral, took place in the 1760s and 1770s under the Vologda bishop Joseph II, known as the Golden. Like many church figures of the 18th century, Joseph was fascinated by architecture. The main result of this work was the creation of his personal apartments, luxurious three-story stone chambers. The Josephine wing, adjoining the southern side of the Gabriel wing, was built between 1764 and 1769, as confirmed by the solemn Latin inscription on the frieze of the main facade facing the courtyard. Joseph the Golden's chambers stood out among the other buildings of the Archierarchical House not only for their splendor but also for a new style for Vologda, which clearly demonstrated the influence of Western European architecture. The festive facades of this palace reflected three varieties of Baroque: St. Petersburg, as well as the earlier Moscow and Ukrainian styles. Therefore, the building was distinguished by luxury and elegance, being exceptional in architecture not only for Vologda.

In the mid-1790s, a staircase with paired half-columns on either side of the entrance and an original shaped dome roof was added to the western side of the main facade of the building.

The interior of the Josephine wing has almost not survived in its original form; in some rooms, only the stucco ceiling decorations and interesting tiled stoves remain.