In March 1609, the Spanish Crown ordered the capital to be moved from San Gabriel to Santa Fe, which became a familiar stopping point for settlers and traders transporting arms and domestic goods from Mexico City along El Camino Real.

During the first 70 years, the province suffered from a shortage of supplies, particularly European luxury items. As a result, in 1659, the governor and his wife opened a shop within the Palace, offering European textiles, shoes, hats, sugar, chocolate, and other special items.

In 1680, during a revolt by the indigenous people, over a thousand colonists with their cattle took refuge in the Palace, which was besieged by cutting off the water supply. After nine days, the governor and residents were forced to flee to El Paso del Norte.

In 1693, the Spanish reclaimed Santa Fe. After a bloody battle, they restored governmental control, rebuilt the Palace and the province, and eventually established better relations with the indigenous peoples, reactivating trade.

In 1821, with Mexico’s independence, Santa Fe became a major international port on the Santa Fe Trail. The Palace adapted to the increased commercial demands driven by the partnerships between Mexico and the United States. Glass windows were installed, customs duties were collected, and spaces were provided for traders to rent for storing their goods.

With Americanization, the Palace underwent architectural renovations and, in 1908, ceased to be an official residence and was converted into a museum. Today, it is a National Historic Landmark and serves as the New Mexico History Museum, highlighting its role in El Camino Real and continuing as a center for cultural and commercial exchange.