U Hybernů Palace has a varied history. It is situated in a remarkable place, across from the and across from where the once stood (and where the Municipal House now stands). The building has been here since even before the foundation of the New Town by Charles IV, and in the 14th century it was an Ambrosian monastery.

After the Thirty Years War (1618 - 1648) Ferdinand II allowed the Irish Franciscans to establish a college on the site of the desolate monastery. Since this time, the house has been called U Hybernů.