The de Luna d'Aragona family acquired the lands surrounding Grotteria and built the Palazzo in 1433, incorporating pre-existing buildings, including the "cripta" of the ancient Church of Sant'Antonio. They held the feudality of Grotteria till the end of the XIV century.
Through the families of Amato, hereditary patrician of Amantea, and de Manso-Infusini, Marquises of Villa, the Palazzo come directly to the current Dukes of San Donato, the Lupis family: the coat of arms of the Marquises Lupis, dukes of San Donato and barons of Castania and Cuzzoghieri, joint to the one of de Luna d'Aragona family, the Barons Amato and the Marquises de Manso-Infusini can be seen on the facade.
The ancient library gather more than 7.000 books, mainly old and rare editions, and the family archive whit original documents from the XV century. Today is the current seat of the Dukes of San Donato, the marquises don Marco and donna Silvia Lupis Macedonio Palermo of Princes of Santa Margherita The Palace also host the headquarter of the 'Istituto Internazionale Mare Nostrum per lo Studio dei Ceti Dirigenti del Mediterraneo”. It can be visited by appointment”