After moving to Russia, the future emperor Peter III felt disconnected from his familiar world and sought to create a new space where he would feel comfortable. He found solace in military entertainments and dreamed of becoming a famous emperor-general. With the permission of his royal aunt, Peter began the construction of the playful military fortress Peterstadt. The main building of the fortress was his two-story palace, designed by the budding architect Antonio Rinaldi. This palace differs from other imperial residences not only in its small size but also in its unusual layout, making it unique even compared to later architecture.

The construction of the palace was completed in 1762. The first floor was intended for household needs, while the second floor housed the heir to the throne himself. The palace, associated with the Romanovs, is a rare architectural monument in the Rococo style, which did not gain widespread popularity in Russia and soon gave way to classicism. Peter Fyodorovich's playful fortress remains one of the few buildings in this style. It is remarkable that the palace survived after the owner's death and, despite its dilapidation, was not destroyed.

In the late 19th century, by order of Emperor Alexander III, the palace was restored, but after the arrival of Soviet power, it became unnecessary and was repurposed for a zoo. During World War II, it was used for storing unshipped exhibits, and in 1953, a museum was opened in it, and restoration was carried out again.

Today, the palace functions as a museum, showcasing numerous exhibits from the time of Peter III. However, these are no longer his personal belongings, but furniture brought in later. Unfortunately, the parquet and many elements of the interior decor have not survived and have been replaced. Nevertheless, considering the complex fate of the palace, its existence can be regarded as a positive fact.