The building of the castle began in 1873 under the direct order of the Viennese architect Wilhem Doderer and was continued in 1876 by his assistant, Johann Schultz de Lemberg. During 1877-1879 because of the war they abandoned work. That's why the castle was inaugurated only on October 7, 1883. The location for the castle was chosen by the German prince Carol I de Hohenzollern, who was to become a king and it draws its name from the neighboring brooks which passes through the courtyard.
Several other buildings, annexed to the castle, were built simultaneously: The Guard's Chambers, The Economat Building, The Foisor Hunting House, The Royal Stables, and the Electrical Power Plant. The Sipot Villa was constructed later. This would serve as the work site of architect Karel Liman. Liman would later supervise the building of Pelisor (1889-1903, the future residence of King Ferdinand and Queen Mary of Romania). as well as of the King's Ferdinand Vila in the Royal Sheepfold Meadow.
The castle was built in wood, stone, bricks and marble and comprises more than 160 rooms. The representative style used is German Renaissance, but one can easily discover elements belonging to the Italian Renaissance, Gothic, German Baroque and French Rococo style.
Peles is surrounded by seven terraces decorated with statues (sculptured by the Italian, Romanelli), stone-made-wells, ornamental vases and Carara marble. The architects used an abundance of wooden decoration, both for the exterior and for the interior of the castle, which confers a very special quality to the building.