Construction on the palace began in 1577 under architect Domenico Tibaldi until his death in 1583. Floriano Ambrosini then took over the architectural duties. In 1797 the palace became a property of the Guidotti family. In the late 19th century they sold it to the Malvezzi Campeggi family whose coat of arms is still visible on the façade. Subsequently Palazzo Magnani was inhabited by the Salem family. Currently it is the headquarters for the Unicredit Bank.
Among the most important artworks in the interior is the frescoed frieze of Histories of the Foundation of Rome executed in 1590 by the brothers Ludovico, Annibale and Agostino Carracci in the salone on the piano nobile. Also notable is the monumental chimney by Ambrosini, decorated by statues of Minerva and Mars by Gabriele Fiorini, and surmounted by the Lupercalia by Annibale Carracci. In the inner courtyard is a statue of "Hercules" whose face is that of Lorenzo Magnani, who had commissioned the Carracci’s frieze.
- Volpe, Carlo (1972). Il fregio dei Carracci e i dipinti di Palazzo Magnani in Bologna,. Litografica Bodoniana.
- Il Credito Romagnolo fra storia, arte e tradizione. Grafis Edizioni. 1985.