The original Pagaruyung palace was built on Batu Patah Hill and was burned down during a riot in the Padri War in 1804. The palace was rebuilt but was destroyed again by a fire in 1966. The building was then rebuilt again in 1976 as a replica of the original Pagaruyung Palace. It was built after the suppression of the Revolutionary Government of the Republic of Indonesia (PRRI) movement in 1958, which was based in West Sumatra. Then-West Sumatra governor Harun Zen initiated the construction of the Istano Basa Pagaruyung in 1976 as a way of reviving the flagging pride of the Minang community after the suppression.[1] The restoration of the palace was marked with the erection of tunggak tuo (main columns) on 27 December 1976 by West Sumatra Governor Harun Zain. After completion, the palace has become well-known to the public as a museum and tourist attraction. This building was not built on the original site but moved south from the original site.

The palace was destroyed by fire on the evening of February 27, 2007, after the roof was struck by lightning.[2] It was estimated that only 15 percent of the valuable artifacts survived the fire. Today the surviving artifacts are stored in Balai Benda Purbakala Kabupaten Tanah Datar (Archaeology Authority of Tanah Datar Regency). The pusaka or heirloom of the Pagaruyung Kingdom was stored in Silinduang Bulan Palace [id; min] located about 2 kilometers from Pagaruyung Palace.[3] Restoration of the building took six years and an estimated RP20 billion (US$1,71 million) to complete. The building was completed and inaugurated by Indonesian President Susilo Bambang Yudhoyono in October 2013.[4][5]