Fox West Coast Theatres also added an exterior marquee and they opened the theater's upper balcony to all patrons, as previously the theater was segregated, with the upper balcony only available to African Americans.

[4] Built of brick and concrete, the building features a facade covered with multi-colored terra cotta (the first of its kind in California[8]), swags, flowers, fairies, and theater masks, all meant to illustrate the spirit of entertainment.

The facade also features four sculpted panels that depict song, dance, music, and drama, all done by Domingo Mora,[4] while the building features arched windows[2] and polychrome cornices, spandrels, keys, and friezes that include an array of ornamentation in the form of bells, harps, grape clusters, and masks.

[8] Palace Theatre's interior design is French and features garland-draped columns and pale pastel colors.

[2][4] The interior lobby also features marble walls and mosaic tiles, and while a carpet at one point covered the decorative flooring, it has since been removed.

[8] Many movies have shot at Palace Theatre, including The Frank Sinatra Story, Gypsy, The Glimmer Man, The Big Lebowski, and Dreamgirls.