The palace was buit around 1600, replacing an earlier hunting lodge. For centuries it was owned by various noble families untill the Danish state purchased and restaured it in 1935. They offered it to be used by king Frederik IX and his wife, queen Ingrid who loved it and used it as a summer residence. This tradition has been maintained by their daughter, the current queen Margrethe II.
The chapel of Graasten castle is the only part of the estate that's open to the public.