[7] The colt raced in the colours of Con Marnane's wife Theresa[8] and was sent into training with the former jump jockey Kevin Ryan at Hambleton, North Yorkshire.

[10] Kieren Fallon took over the ride when the colt was stepped up in class and started a 16/1 outsider for the Listed Acomb Stakes at York Racecourse in August.

After tracking the leaders he was switched right to race down the wide outside in the straight, took the lead well inside the final furlong and won by a length and a quarter from Araafa.

Starting a 25/1 outsider he took the lead approaching the final furlong but was overtaken in the closing stages and finished fifth behind Sir Percy, Horatio Nelson, Opera Cape and Red Clubs.

[14] Before the start of the 2006 season, Palace Episode was acquired by Sheikh Mohammed's Godolphin Racing organisation and joined the training table of Saeed bin Suroor.

On his first appearance for his new connections, Palace Episode contested the Dante Stakes (a major trial race for The Derby) over ten and a half furlongs at York in May and started second favourite behind Septimus at odds of 100/30.

Ridden by Frankie Dettori he led in the early stages before settling in second but weakened rapidly in the straight and was virtually pulled up in the final furlong to finish tailed-off last of the six runners.

The horse failed to win in three starts, finishing seventh and second in two allowances at Churchill Downs in June and fourth in a similar event at Arlington Park in July.

[17] At the end of his racing career Palace Episode returned to Europe to become a breeding stallion at Haras du Logis Saint Germain in France.