Pena Palace was built on the site of a 12th century chapel dedicated to Our Lady of Pena. King Manuel I was a great admirer of this site, and in 1493, ordered the construction of a monastery to be built there. The devastating Lisbon earthquake of 1755, destroyed much of the site, but fortunately the chapel managed to survive. It was then decided by the King Ferdinand II to acquire the monastery and its surrounding, and to build the Grand Pena Palace.