The park took its name from the already existing 17th century bath house raised for Stanisław Herakliusz Lubomirski by Tylman of Gameran. The bath house was bought from him by King Stanisław August Poniatowski in 1764, who had it converted into a summer residence according to Dominik Merlin's design. In 1784, the southern elevation was remodeled, but some of its Baroque elements were preserved. During the next four years the palace was enlarged on the side of its northern elevation which, together with its monumental portico, received classicistic appearance.

Similar heterogeneity is characteristic of the palace interior decorations. Along with the works on the palace, other construction works were carried out in the park and the following buildings were raised: the White Cottage (1774-1777), Myílewicki Palace (1775-1778), Old Orangery Theatre (1786-1788), and the Theatre on the Island (1790). The Łazienki Palace, partly destroyed by fighting in World War II, is one of the most charming, little, private royal residences of that time. The beautiful English park with ponds and canals adds much to the palace's delightful appearance.

A memorial to Frederik Chopin designed by Wacław Szymanowski stands in the park on the Ujazdowskie Avenue side. Free public concerts of Chopin music are given there in summer time.