The first owner of the Tauride Palace was Prince Grigory Potemkin, the favorite of Catherine II. He held the position of governor-general of the New Russia, Azov, and Astrakhan provinces, but often traveled to St. Petersburg. Frequent stops at the Winter Palace became inconvenient for him, so in 1783 he decided to build his own palace. After the construction was completed, Potemkin soon sold it to the treasury, but in 1791 the mansion returned to him: Catherine II gifted it to Potemkin in gratitude for the capture of the fortress of Izmail. After Potemkin's death, Catherine bought the palace back, and for some time Alexander Suvorov lived there. The historian Nikolai Karamzin also spent his last days in the Tauride.

The palace was designed by architect Ivan Starov, who studied with Potemkin at the Moscow University gymnasium. Starov created not just a house for the prince, but a true urban estate with a magnificent park.

The main rooms of the palace include the Dome Hall, the Great Gallery (Catherine's Hall), the vestibule, and the winter garden. At the time of its construction, the Tauride's Great Gallery was the largest palace room in St. Petersburg: the hall was 74.5 meters long and 14.9 meters wide. The winter garden with rare plants also amazed contemporaries.

Initially, the palace was called the Horse Guards House, as it was located in the settlement of the Horse Guards regiment, where Potemkin served. The modern name Tauride Palace was given after Potemkin's death by the order of Catherine II in honor of the annexation of Crimea in 1787, which became possible thanks to Potemkin. In 1918, the palace was renamed in honor of Moisei Uritsky, but this name did not take hold, and soon the historical name was restored.

After Potemkin's death, architect Fyodor Volkov restored the palace. According to his design, a church was built in place of the Great Hall, a portico was added to the main entrance, and the concert hall was transformed into a theater. A canal was also dug to the entrance, connecting with the Neva, so that ships could approach the palace.

During Paul I's reign, the building was reconstructed again. The emperor transferred it to the Horse Guards regiment, resulting in the arrangement of a riding hall in the Catherine and Dome Halls, and barracks in other rooms. Stables were placed in the winter garden.

In the early 20th century, the palace was transferred to the State Duma. After the revolution, it housed the Provisional Committee and the Provisional Government, and later the Petrograd Soviet of Workers' Deputies.

Today, the palace serves as the headquarters of the Inter-Parliamentary Assembly of the CIS countries.