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The baroque palace in Fertõd was built in 1776 on the orders of the immensely rich Hungarian Esterházy family, which sided with the Habsburgs during the most difficult times of the Austro-Hungarian Empire, for which Esterházys were lavishly rewarded. The family motto was "Everything the Emperor can do we will do better!" The palace was designed to rival Versailles.

Following a short period of prosperity under Prince Miklós Esterházy "The Ostentatious", the palace was neglected and fell into decay under his successor. Restoration began as recently as in 1950 and is still under way as the Hungarian government cannot afford the exuberant cost. Today, only 23 out of 126 rooms of the palace are open to visitors.