St. James's Palace was commissioned by Henry the Eighth, it became the principal residence of the monarch in London from 1698, when Whitehall Palace was destroyed by fire and it began to be the administrative centre of the monarchy - a role it retains to the present day.
The Royal Court is still formally based there and all foreign ambasssdors are still accredited to the Court of St. James's and it is from here that the announcement is proclaimed when a new Monarch accedes to the throne.
Queen Mary the First (sister of Elizabeth the First and eldest daughter of Henry the Eighth) is buried with her sister in Westminster Abbey but her heart is buried in the Chapel Royal within the Palace. It was in this Chapel Royal, that Diana, Princess of Wales lay until the night before her funeral.
It is the London residence of the Princess Royal.
The red brick Tudor gatehouse survives on the north side and is guarded by the Household Cavalry - the crowds are usually less dense here if you want to watch the Changing of the Guard ceremony.
The Queens Chapel, built by Inigo Jones is across the road from the Palace and is open to the public at selected times. There is no public access to the palace.
See: St. James's Park and other London Areas