In 1940, already named Museu Nacional Soares dos Reis, it moved to the neoclassical palace where it is presently located. The building was created in late 18th century to host the factory and house of the Morais e Castro family, commonly known as Carrancas.
During the Siege of Porto (1832-33) it was used as residence but also as headquarters of Dom Pedro IV army, but only for 4 months, because its location made it an easy target for Dom Miguel batteries, stationed on the opposite side of the river, near to Serra do Pilar.
Presently, the museum is dedicated to preserving and valuing 19th and 20th century art, related to the Escola do Porto (School of Porto), as well as decorative arts from various periods and proveniences.