Sitting adjacent to Luna Park, it helped to establish the St Kilda beach foreshore as an entertainment precinct, and remains an iconic landmark in the area.

In 1925, Griffin was again employed to design a substantial remodelling of the Palais Pictures next door; work was nearly complete in 1926 when a fire destroyed the whole building.

The theatre, which had operated primarily as a cinema until the 1950s, became increasingly popular as a live performance venue, hosting top overseas stars such as Johnnie Ray, Bob Hope, the Rolling Stones, Tom Jones and many others.

[citation needed] In 1975, the International Women's Film Festival screened and hosted events at the Palais, coordinated by Suzanne Spunner, founder of Lip, a feminist magazine, the following year.

[12] In the mid-2000s, the City of Port Phillip, managers of the land, proposed a large-scale redevelopment of the St Kilda 'Triangle', the site including the Palais and the adjacent car park.

The lease of the site and building, which was nearing its end, was not renewed with the then-lessee,[13] who controversially removed a number of items, notably the Spanish-style lobby chandelier.

The arched roof and twin domed towers of the façade is an arrangement shared by other entertainment buildings in the foreshore area, notably Luna Park next door, the St Kilda Sea Baths, and long demolished landmarks like the Palais de Danse to the north, and the St. Moritz Ice Rink on the Upper Esplanade.

[citation needed] The architect Henry White stated that he adopted no particular style in the design of the Palais Pictures building, and the interior has been described at times as Spanish, French, Oriental and Italian.