This palace was previously called Baron Derlingi Palace, and it is one of the most prominent landmarks in this beautiful city. It combines the characteristics of majestic Andalusian architectural designs, and distinctive Tunisian architecture. The palace contains two floors, the lower and upper floors with large gilded rooms and a room called the Blue Room, in addition to a rectangular courtyard, a library room, and a music room that contains a white marble panel with musical instruments dating back to different periods. The building was transformed into a center for Arabic music in 1991, which made it a home for rare Arabic musical instruments.