The palace suffered extensive damage due to its proximity to the outer walls during the Ottoman conquest of Constantinople in 1453. Afterwards it was used for a wide variety of purposes. During the 16th and 17th century, it housed part of the Sultan's menagerie. The animals were moved elsewhere by the end of the 17th century, and the building was used as a brothel. From 1719, the "Tekfur Sarayı" pottery workshop was established, and began to produce ceramic tiles in a style similar to that of İznik tiles, but influenced by European designs and colors. The workshop had five kilns and also produced vessels and dishes. It lasted for around a century before going out of business, and by the first half of the 19th century, the building became a poorhouse for Istanbul Jews. In the early 20th century, it was briefly used as a bottle factory, before being abandoned. As a result, only the elaborate brick and stone outer façade survives today, as one of the few surviving examples of secular Byzantine architecture. In July 2010, the palace had undergone extensive restoration. In March 2015, the building had a roof and glass windows installed. As of 2021, the Palace has been restored and is now a museum, with a finished roof, wooden floors, a new staircase, and fixed windows.