200 years ago Secularization changed the German Southwest. Following the Napoleonic wars, the buildings, landholdings and property of the monasteries and bishoprics passed into state ownership. The repercussions are felt up until today, as new uses had to be found repeatedly for most of the empty buildings. Ellwangen Palace was also affected by the closure of religious institutions and the takeover of church property.
When Württemberg troops occupied the palace in September 1802, Württemberg took over a powerful small state with an administration and economy modernized under Prince Provost Clemens Wenzeslaus. At this time it constituted the largest territory of all convents and abbeys in Württemberg.
As the threatening takeover approached, the last Prince Provost of Ellwangen, Clemens Wenzeslaus, had reported in a letter that he did not intend "to put up the slightest resistance to the military force marching in." He intended to see to the supply of the soldiers. "In accordance with the agreements on provisions applicable in this case". As compensation Elector Friedrich named Ellwangen a "Good Town", which was later allowed to send its own representative to the Landtag (state parliament).
In 1803 Elector Friedrich of Württemberg made Ellwangen the residential palace of New Württemberg, his portion of the country gained through the subjection of the dominions previously only directly subject to the Emperor ("Mediatisierung") and secularization. The dining hall of the former palace of the prince provosts became the throne room of Friedrich I of Württemberg.
With the unification of Old and New Württemberg in 1806 to form the kingdom, Ellwangen lost its function as a residential town, however retained a central role as the administrative location of the region of New Württemberg. In 1849 the entire palace inventory was sold at auction and the palace complex was converted to a seat for government offices. Ellwangen became a town of government officials.