The palace was constructed for the Muslim Charity Society by Józef Plośko at the expense of the millionaire Musa Naghiyev in commemoration of his deceased son Ismayil, and was named Ismailiyya after him. Construction began in 1908 and ended in 1913. The building was constructed in the Venetian Gothic style. The following sentences were carved with golden letters on the front and side facades of the building to indicate that this building was intended for the Muslim Charity Society:
“Human rises with work, and only with the help of work he can achieve his goal. “ “Work created the human.” “A person should strive for knowledge from birth to death.” “Muslims, your century dies with you. Prepare your descendants for the future.” “Strive for knowledge, in spite of the length of the way.”
After the opening ceremony, conferences of Muslim Charity Society members, meetings of Muslim women and Baku intelligentsia, and congresses of clergy were held in the building's white stone assembly hall. The hall's windows open onto Nikolayevskaya street. During the March Days in 1918 the building suffered damage from fire and warfare. In 1923, under the guidance of the architect Dubov, the building was reconstructed and the sentences on the front and side facades were removed. After the reconstruction of “Ismailiyya”, it was occupied by various organizations and agencies: “Society of Inspection and Study of Azerbaijan”, “Archeological Commission”, “Society of Turkish Culture”, “Fund of Manuscripts”, Republican branch of the Academy of Sciences of the USSR and others. At present, the Presidium of the Academy of Sciences is located there.