The Palace was built in 1608 by the Benedictine monks of Montevergine. Its purpose was to house religious communities.
In 1820, the palace became the property of the municipality of Airola and suffered extensive damage after the 1980 earthquake.
The monastery developed in the side spaces of the church dedicated to Santa Maria della Misericordia. Today, the south wing of the building houses the Carabinieri station and the north wing houses municipal offices and a vocational school.