The very first mention of Castle Il Palagio dates back to the year 1250. At that time, Mercatale was one of the most important villages in Florentine Chianti. Its imposing structure has resisted numerous attacks and sieges, the first dating back to 1260, when the Ghibellines destroyed the surrounding area after having been defeated in the battle of Montaperti.

The castle belonged at first to the Visdomini family, coming from Petroio, and then to the Canigianis. Castle Il Palagio was renovated and enlarged in 1320, when a new storey was added. At the time, the castle was even larger than today.

Baron Miniati acquired the castle at the end of the 17th century. The castle was converted into a villa and decorated with works of art.

The castle was renovated a second time in the Gothic Revival style, that was so appreciated in the 19th century. On this occasion the castle was decorated with battlements, which had not been existing so far.