Dolmabahçe Palace was ordered by the Empire's 31st Sultan, Abdulmejid I, and built between the years 1843 and 1856. Previously, the Sultan and his family had lived at the Topkapı Palace, but as the medieval Topkapı was lacking in contemporary style, luxury, and comfort, as compared to the palaces of the European monarchs, Abdülmecid decided to build a new modern palace near the site of the former Beşiktaş Sahil Palace, which was demolished. Hacı Said Ağa was responsible for the construction works, while the project was realized by architects Garabet Balyan, his son Nigoğayos Balyan, and Evanis Kalfa.

The construction cost five million Ottoman gold lira, or 35 tonnes of gold, the equivalent of ca. $1.9 billion in today's (2021) gold values. This sum corresponded to approximately a quarter of the yearly tax revenue. Actually, the construction was financed through debasement, by massive issue of paper money, as well as by foreign loans. The huge expenses placed an enormous burden on the state purse and contributed to the deteriorating financial situation of the Ottoman Empire, which eventually defaulted on its public debt in October 1875.

The palace was home to six Sultans from 1856, when it was first inhabited, up until the abolition of the Caliphate in 1924: The last royal to live here was Caliph Abdülmecid Efendi. A law that went into effect on March 3, 1924, transferred the ownership of the palace to the national heritage of the new Turkish Republic.[4] Mustafa Kemal Atatürk, the founder and first President of the Republic of Turkey, used the palace as a presidential residence during the summers and enacted some of his most important works here. Atatürk spent the last days of his medical treatment in this palace, where he died on November 10, 1938.

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