What is Holyrood Palace famous for? Palace of Holyroodhouse is absolutely worth visiting for any royal enthusiast or history buff Perhaps one of the most famous monarchs to live at the Palace of Holyroodhouse, Mary, Queen of Scots’ chambers where she lived between 1561-1567 The Palace of Holyroodhouse has now been home to royalty for over 500 years, and is still the official residence of The Queen in Scotland The name derives either from a legendary vision of the cross witnessed by David I, or from a relic of the True Cross known as the Holy Rood or Black Rood, and which had belonged to Saint Margaret, David's mother. As a royal foundation, and sited close to Edinburgh Castle, it became an important administrative centre.