The present Jacobean house was built in 1611 by Robert Cecil, First Earl of Salisbury and Chief Minister to King James I and has been the home of the Cecil family ever since. It is a prime example of Jacobean architecture and is currently the home of Robert Gascoyne-Cecil, 7th Marquess of Salisbury.

Henry VIII's children, King Edward VI and the future Queen Elizabeth I, spent their youth at Hatfield Palace. His eldest daughter, who later reigned as Queen Mary I, lived there between 1533 and 1536, when she was sent to wait on the then Princess Elizabeth, as punishment for refusing to recognise Henry's marriage to Anne Boleyn and his religious reforms. In 1548, when she was only 15 years old, Elizabeth was under suspicion of having illegally agreed to marry Thomas Seymour, the House and her servants were seized by Edward VI's agent Robert Tyrwhit, and she was interrogated there. She successfully defended her conduct with wit and defiance. Seymour was executed in 1549 for numerous other crimes against the crown. After her two months of imprisonment in the Tower of London by her sister Queen Mary, Elizabeth returned to Hatfield.