The palace belonged to the famous noble family Drago.
Drago Palace consists of two parts, the northern one built in late Gothic style of the 14th-15th century, and the southern one, facing St. Tryphon’s Square, rebuilt in Renaissance-Baroque style at the end of the 17th century. On the façade facing the square, above the vaulted passage, is a Renaissance window, which is surmounted by a carved angel with spreading wings. Above the angel, on the second floor, is an ornate two-light window in the Gothic style. The northern façade is decorated with a large trifora and monoforas on the second floor, and a monofora and the entrance portal which is reached by staircase on the first floor. After the earthquake of 1979 the northern façade was extensively restored, with special attention given to its decorative elements.
The Drago family died out at the beginning of the 19th century, after which the palace belonged to the Municipality of Kotor and served public purpose. For a long period, it was used as a nursery school and immediately before the earthquake of 1979 as an apartment house. Since the renovation after the earthquake, the palace has been housing the Regional Institute for Heritage Protection. Source: Martinović Jovan, Sto kotorskih dragulja, Rijeka Crnojevića, 1995.