This palace is situated in the center of the city. It was built for the famous Niš pelt trader and property owner Nikola Jovanović, who ran a successful business trading in hats, caps and other headwear. The design is the work of the famous Belgrade architect Krehlik Jelinek, and it is supposed to have been built between 1927 and 1932.

It is a representative palace, with a ground level and two floors, built in the spirit of European traditionalism. The façade was finished in artificial stone, in a symmetrical way, with two bay windows positioned vertically and balconies between them. A shallow decoration in geometric forms was implemented, and the accompanying elements are the pilasters – marked columns which have very effectively finished capitals. The design of the entrance is marked by an elegant wrought iron gate.

The basic residential function of the palace has not changed, except for a certain period of time when the building housed the Chamber of Physicians in one of its parts.