The historic roots of the demesne can be traced back to 1526 when the estate was purchased by the Cielesniccy family and named Cielesnica after their family name. Over the centuries the place was in possession of different noble families, among them historic sources mention names such as Andruszkiewicz, Kochanowski or Radziwiłł.

The beginning of 19th century was marked by a resilient development of the manor due to the new owner, Andrzej Serwinski. He directed all his efforts towards upgrading the estate and it was under his governance that the pace gained a brewery, windmill, brickyard, scenic park, and conservatory. His crowning achievement, however, was the erection of a classical palace, the project initiated in 1832 and completed in 1835. The palace was either designed by Andrzej Serwinski himself, who was an accomplished architect, or by Antonio Corazzi, an Italian architect who among other things designed Grand Theatre in Warsaw.

In the 1920s Cielesnica underwent another phase of modernisation. Stanislaw Rozyczka de Rosenwerth equipped the estate with an alcohol factory, steam mill, and power plant. What is more, he established a thriving arable, fish, and stock-rising farm. Since the palace suffered partial damage during WWI, the householder commissioned its restoration and refurbishment in years 1921-1928. In addition to his superb household management skills, Stanislaw Rozyczka de Rosenwerth was also marked as a prominent local figure, being one of the founders and constructors of Podlasie Aircraft Works (PWS), one of the leading Polish aerospace manufacturers of those times.

In September 1939 Cielesnica Palace was commandeered by Russian troops and then by the Germans. The family of Rozyczka de Rosenwerth remained in the palace until the end of WWII; afterwards the manor became the property of Polish State Treasury. The palace served many different purposes, for instance it was the premises of a cinema room, coffee house, or health centre.

In 2009 Cielesnica Palace was purchased by the present owners who embarked on a project of adapting the historic palace and park complex for an exclusive hotel and restaurant. After the scrupulous renovation works conducted in cooperation with a preservationist, the place has been restored to its former glory. The renovation was conducted with a view to retaining the appearance of the palace from the 1920s, the times when the palace underwent its last restoration. The interior, furnished with taste and elegance, pertains to the art deco style characteristic for the 1920s.

In 2013 the hotel and restaurant were opened for tourists and guests.