It is one of the eight original stations opened as part of the first section of line 1 between Porte de Vincennes and Porte Maillot on 19 July 1900, under the name Palais Royal. The line 7 platforms were opened on 1 July 1916 with the extension of the line from Opéra. It was the southern terminus of the line until it was extended to Pont Marie on 16 April 1926. The station was given its current name in 1989, soon after the opening of the new entrance to the Louvre Museum. It is named after the nearby Palais Royal and the Louvre.
The entrance on Place Colette was redesigned by Jean-Michel Othoniel, as the "Kiosque des noctambules" (Kiosk of the night-walkers), and completed in October 2000 for the centenary of the Métro. Two cupolas of the "Kiosque des noctambules" (one representing the day, the other the night) are made of colored glass beads that are threaded to structure of aluminum. They make an unexpected and original work in the very traditional environment of the Place Colette.