The palace was designed by Georg Wenzeslaus von Knobelsdorff between 1745 and 1747 to fulfil Frederick's need for a private residence where he could relax away from the hustle and bustle of the Berlin court. This is emphasized by the palace's name, Sanssouci is a French term which translates loosely as "without cares" or "carefree" symbolising that the palace was a place for relaxation rather than a seat of power.

After World War II, the palace became a tourist attraction in East Germany. It was fully maintained with due respect to its historical importance and was open to the public. Following German reunification in 1990, the final wish of Frederick came to pass. His body was finally returned to his beloved palace and buried in a new tomb overlooking the gardens he had created. Sanssouci and its extensive gardens became a World Heritage Site in 1990 under the protection of UNESCO and are now visited by more than two million people a year from all over the world.