Tehran's arg ("citadel") was built during the reign of Tahmasp I (r. 1524–1576) of the Safavid dynasty (1502–1736), and was later renovated by Karim Khan of the Zand dynasty (r. 1750–1779). Agha Mohammad Khan of the Qajar dynasty (1742–1797) chose Tehran as his capital. The arg became the seat of the Qajars (1794–1925). The court and palace of Golestan became the official residence of the Qajar dynasty. The palace was rebuilt to its current form in 1865 by Haji Ab ol Hasan Mimar Navai.

During the Pahlavi era (1925–1979), the Golestan Palace was used for formal royal receptions, and the Pahlavi dynasty built their own palace (the Niavaran Complex) in Niavaran. The most important ceremonies held in the palace during the Pahlavi era were the coronation of Reza Shah (r. 1925–1941)[1] on the Marble Throne and the coronation of Mohammad Reza Pahlavi (r. 1941 – 1979) in the Museum Hall.

In between 1925 and 1945, a large portion of the buildings of the complex were destroyed on the orders of Reza Shah. He believed that the centuries-old Qajar palace should not hinder the growth of a modern city. In the place of the old buildings, commercial buildings with the modern style of 1950s and 1960s were erected.