It was built in the XIV century in the place of same other old buildings,perhaps by the same owners, with the aim of renovating that part of the town. The Dragoni family, considered by Severo Minervio as 'a popular and illustrious family', became more and more important in Spoleto, thanks to the income they derived from agricolture and public administration. The family crest is ashield with three golden dragon heads on a red background and later changed to three green heads on a gold background. The Diotallevi family is now the owner of Dragoni Palace that is considered a 'Historic Residence'
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