This palace was the headquarters and mother house of the House of Zúñiga. It was built in the 15th century as a fortified building by the newly appointed Dukes of Plasencia by the Catholic Monarchs, Don Álvaro de Zúñiga, remarried to Doña Isabel de Pimentel.

The Palace of the Marquis of Mirabel is the most important civil building in the city. It was declared an asset of cultural interest in 1977.

In its construction, it has a large Renaissance patio, built on two floors with semicircular arches and decorated with the coats of arms of the Zúñiga-Mirabel noble house.
The Mirabel Palace is attached to the Santo Domingo church and convent (current National Parador), through a hanging garden, open to the Plaza de San Nicolás and decorated with columns and Roman sculptures from Cáparra and Mérida. At the back of the building there is a very outstanding Plateresque-style balcony, unique in the city.