The Paliam Palace was once used as the residence of the Paliath Achans, who were the prime ministers to the former Maharajas of the State of Kochi. During the 16th century, when the security of the Raja was under threat by the Portuguese, the then Paliath Achan ensured the safety of the Raja by escorting him to Chendamangalam. ). The Raja is believed to have stayed incognito in the place near the Kalari, hence the name Paliam Kovilakom (Palace). The Dutch in appreciation of the Paliath Achan's services renovated this building in Chendamangalam and presented it to him.
The two storey (G+2) building can be termed as a highly efficient functional building of its times. In spite of minimum ornamentation it reflects the Dutch influence in the architecture. The building features, elaborately carved wooden staircases and balustrades and thick walls with splayed openings. A circulation space runs along the private area of the building, facilitating air movement, resulting in insulating the interior, making it cooler compared to the peripheral. In earlier times, women were not allowed inside. Only the elder members of the family could stay there. The Paliath Achans used to address the people of Chendamangalam from the Prasanga Peedum, which is on the top of the entrance passage of the Palace.