The Playful Palace is located at the western wall of the Kremlin between the Commandant and Trinity Towers. It was built in 1651 as residential chambers for the boyar I.D. Miloslavsky, the father-in-law of Tsar Alexei Mikhailovich, and is the only surviving example of boyar chambers in the Kremlin.

The area between the fortress wall and the outbuildings of the royal residence determined the layout of Miloslavsky's estate. In the center of the area stood the building itself, with ceremonial and utility courtyards to the south and north. The almost square building had an arched passage in the middle connecting both territories. The ceremonial porch faced the southern courtyard and adjoined the main volume of the chambers.

After Miloslavsky's death in 1669, the estate passed to the royal treasury, and the chambers were connected by stone passages to the Tsar's Palace. In 1672, theatrical performances for the royal family began to be held here, which is why the chambers became known as the Playful Palace. In 1679, when members of the royal family settled here, the palace was expanded and partially rebuilt.

The Playful Palace became the next stage in the development of stone housing after the Terem Palace. The facades with white stone decor and the enfilade arrangement of rooms make it resemble the Terem Palace. A distinctive feature of the palace is the house church of the Praise of the Mother of God, built into the building and rising above the eastern facade. Brackets in the form of machicolations support the altar of the church, which allowed for the canonical placement of the altar section above the living quarters. The flat roof with a hanging garden served as a porch.

During Peter I's reign, the Police Order was located in the palace, and in 1806 the building was adapted for housing and offices of the commandant of Moscow. The reconstruction designed by I.V. Yegotov involved transforming the eastern facade into the main one, for which a northern wing was added and pseudo-Gothic details were introduced. The church was abolished.

In 1874-1875, architect N.A. Shokhin attempted to partially restore the building to its ancient appearance.

Currently, the palace houses the services of the Kremlin Commandant, which conducted restoration work from 2000 to 2004 to restore the original appearance of the Church of the Praise of the Mother of God and the Playful Palace.