In 1858, France launched an attack on ?? N廕登g, starting its invasion of Vietnam. In 1867, France completed its conquest of southern Vietnam (Cochinchina), comprising the provinces of Bi礙n Ho?, Gia ?廙??h, ?廙??h T??廙??g, V藺nh Long, An Giang, and H? Ti礙n. To consolidate the newly established colony, on 23 February 1868, Lagrandi癡re, Governor of Cochinchina, held a ceremony to lay the foundation stone of a new palace to replace the old wooden palace built in 1863.

The new palace was designed by Hermite, who was also the architect of the Hong Kong City Hall. The first cubic stone, measuring 50 cm along each edge, with indentations containing French gold and silver coins bearing Napoleon III's effigy, came from Bi礙n H簷a. The complex covered an area of 12 hectares, including a palace with an 80-meter-wide fa癟ade, a guest-chamber capable of accommodating 800 people, with a spacious gardens covered by green trees and a lawn. Most of the building materials were imported from France. Owing to the Franco-Prussian War of 1870, construction fell behind schedule and was not completed until 1873. The palace was named Norodom Palace after the then king of Cambodia, Norodom (1834??904).

On 27 February 1962, two pilots of Ngo Dinh Di廙????? Vietnam Air Force rebelled and flew two A-1 Skyraider aircraft towards the palace and bombed it, instead of going on a raid against the Vi廙?? C廙??g. As a result, almost the entire left wing was destroyed. However, Di廙?? and his family escaped the assassination attempt. As it was almost impossible to restore the palace, Di廙?? ordered it demolished and commissioned a new building - the current Reunification Palace - in its place.