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The Roman palace in Polače refers to a fortified complex that includes an ancient palace, thermal baths, two early Christian basilicas, an arsenal, a galley warehouse, and submerged pier remains. It is situated in the Polače settlement, within the bay of the same name on Mljet Island. Throughout Polača's harbor, protected from harsh winds, stand column remnants where Roman galleys once moored. The harbor, shielded by four islets—Moračnik, Tajnik, Ovrata, Kobrava—features a freshwater source, influencing the palace's placement. In the 5th century, this Roman property yielded an annual income of 500 solidi, with an economy based on salt, wine, olive oil, honey, sheep and goat products, and preserved fish. The absence of settlement traces in Polače Bay suggests that Roman galleys overwintered there, necessitating numerous church edifices. Ranking third in preservation and size among Roman monuments on Croatia's Adriatic coast, the Mljet Palace follows Diocletian's Palace in Split and the Arena in Pula.

The earliest historical records of the island of Mljet trace back to the 4th century BC, linked to Greek sailors en route to their colonies on the islands of Korčula, Vis, and Hvar, navigating through what is now known as the Mljet Channel. These sailors would anchor at coastal spots with fresh water sources, likely entering Polače Bay to seek refuge from strong southerly winds, as the bay offers protection from winds on all sides. While no material evidence of Greek presence exists on Mljet's mainland, the seabed's abundance of amphorae serves as undeniable proof of their activity. The Roman author Appian provides the first detailed account of the island's settlement in his "Roman Civil Wars," recounting Emperor Augustus's campaigns against the Illyrians on Mljet and Korčula. Appian records the destruction of the city of Melitussa by Augustus, though the precise location of this city remains a subject of debate among historians. Most agree that Melitussa was not a city but rather a sizable Illyrian community characterized by dry stone walls, likely situated in Polače's harbor. This site offered optimal conditions for a larger settlement, being well-protected, having a freshwater source, and surrounded by land conducive to agriculture and livestock rearing.

Agesilaus of Anazarbus in Cilicia, modeled after Roman village designs from the Empire era, is said to have built a palace. Seeking refuge on the island of Mljet with his son, the poet Oppian, after being expelled from the court by Emperor Septimius Severus, legend has it that they were released from captivity by Emperor Caracalla. This was after Oppian recited verses extolling the sea's beauty and fishing from his didactic epics, the Halieutica and Cynegetica. Declining an invitation to return to Rome, they argued that their modest dominion was preferable to a vast one, symbolically sending the emperor an Aleppo pine branch with a bird's nest and a shell. The exact date of the palace's construction remains unknown, but it is believed that the first estate on Mljet was established by Augustus following his conquest of the island. Eventually, a palace was erected, serving as a dining place for the Roman governor overseeing Mljet. Constructed for strategic reasons, the palace was sheltered from the wind, with a freshwater source within fifty meters of the sea. Today, the palace stands as a significant Roman period monument and is among the most monumental on the Adriatic coast.

Adjacent to the palace, two holy edifices have been conserved, among which the most substantial and well-preserved is an early Christian basilica situated about 70 meters southwest of the palace. This basilica underwent three phases of enhancement and enlargement during distinct eras. Its initial construction is the earliest example of early Christian architecture in our coastal region, dating back to the 5th century. The subsequent phase occurred between the 6th and 9th centuries, while the final phase corresponds to the vernacular Romanesque period of the 12th century. During excavations, archaeologically significant artifacts were uncovered within the basilica: a priest's seat alongside a bishop's throne and a baptismal font. Additionally, a fully vaulted grave containing a human skeleton over 1500 years old was found. Accompanying the skeleton were numerous ceremonial vessels, a marble altar flask, and various ceramic fragments. A stone tablet bearing the following inscription was also discovered:
...in the Latin text:
... translated
PRO SALUTE P. C
FOR THE WELL-BEING P.C.
BALBINIANI TEMPLUM
YOUR BALBINIAN TEMPLE
TUUM PORTICO
HE ENLARGED WITH A PORTICO
ADAMPLIAVIT MAGNUS
THE GREAT STEWARD
LIBERO [ANIMO] [E]T
WITH FREE [SPIRIT]
LIBE[N] FECI[T]
RADOSTAN CONSTRUCTED

The destruction of Melitussa led to Emperor Augustus occupying only the western part of Mljet island, likely due to insufficient soldiers to cover the entire forest-covered island. Following the conquest, an imperial estate emerged in Polače Bay. The Illyrians migrated from Polač to the island's eastern regions. Over time, trade and cultural exchanges led to their Romanization, evidenced by Roman relics found in various locations, such as ember remains in Pomena, and Roman coins in Koriti.