In June 1914, Greek immigrant Victor Charas with the help of general contractor Henry Macropol and architect Leon Lempert & Son began construction on the theatre.

Local press billed the evening as the grandest social occasion of the century and the musical comedy Modern Eve played to a full house.

[citation needed] Up to 1930 the Palace had touring vaudeville companies regularly on its stage, with famous performers of the day, including Jimmy Durante, Bob Hope, Harry Houdini, The Marx Brothers, and Red Skelton.

[2] Vaudeville began to lose public favor toward the end of the 1920s, as silent pictures and talkies drew crowds to the silver screen.

In 1973, two young impresarios - Jon Ogden and Rebecca Gould discovered that Manchester lawyer John McLane had prevailed upon the Norwin S. and Elizabeth N. Bean Foundation to take an option on the Palace in hopes of finding a way to keep it from being sold and torn down.

McLane and Gould spearheaded a campaign to provide operating funds for the Palace while Ogden served as the general contractor for the renovation process.

Mayor Sylvio Dupuis, a member of the Board of Directors of the newly formed New Hampshire Performing Arts Center, served as emcee at the opening night ceremonies.

Facing Hanover Street is a two-story brick-and-stone structure with a pressed-metal facade containing five store fronts, of which the westernmost houses the lobby of the theatre.