Kheireddine ‘s palace, built between 1860 and 1870 at the initiative of minister Kheireddine Pasha, is a historical monument in the middle of the medina. Its façade with broad street openings and Italian interior decorations with gold moldings blend traditional space organization and European innovations. Following the French mandate and the departure of Minister Kheireddine, the property was divided and sold in 1881. The palace, after having served as a court was sold, along with its annexes to a number of private owners in 1905.
Between 1910 and 1920 the southern part of the palace was demolished and a school, that was owned by the Jewish community, was built. The northern half of the palace was allocated to a Muslim school at Tribunal Square, which was used in 1999 as the Museum of the City of Tunis, following the ranking of the Kheireddine Palace as a Historic Monument by Decree of 19 October 1992.
Currently, this museum regularly hosts exhibitions and is one of Tunisia ‘s largest art galleries. The first exhibition to be held there was in 1994.