The palace was erected in 1565. In the 19th century it was internally modernised and externally enriched in Venetian Gothic style, with rich window framing, by a series of grand owners. The first neo-Gothic improvements were made after 1840, when the young Archduke Frederick Ferdinand of Austria (1821-1847) reassembled the property, the Palazzo Cavalli-Gussoni, which had become divided among heirs, and embarked on a complex project intended to give a more prominent Habsburg presence along the Grand Canal, as Austria-Hungary had been awarded the territories of Venice after the Napoleonic Wars. Since 1999 it has been the seat of the Istituto Veneto di Scienze, Lettere e Arti and frequently houses cultural events.