In the 13th century, Archbishop Grey bought the manor house at what was then St. Andrewthorpe and gave it to the Dean and Chapter of York Minster. Since then, the village became known as Bishopthorpe.
The Palace is a listed building in a wooded rural setting and includes a Gatehouse, Stables, a Brewhouse and Brewster's Cottage. It was remodelled by Thomas Atkinson between 1763 and 1769.