The hill originally had two summits separated by a depression; the highest part was called Palatium and the other Germalus (or Cermalus).
[5] The name of the hill is the etymological origin of the word palace and its cognates in other languages (Greek: παλάτιον, Italian: palazzo, French: palais, Spanish: palacio, Portuguese: palácio, German: Pfalz and Palast, Czech: palác, Croatian: palača, etc.).
[a][9] According to Roman mythology, the Palatine Hill was the location of the cave, known as the Lupercal, where Romulus and Remus were found by the she-wolf Lupa that kept them alive.
[11] Excavations performed on the hill in 1907 and again in 1948 unearthed a collection of huts believed to have been used for funerary purposes between the 9th and 7th century BC approximating the time period when the city of Rome was founded.
Roman mythology, as recounted in Virgil's Aeneid for example, states that the city was founded by Evander of Pallene and other ancient Greeks sometime previous to the Trojan War.
In addition, Dionysius of Halicarnassus writes that Romans say that the city was founded by Greeks from Pallantium of Arcadia, about sixty years before the Trojan war and the leader was Evander.
Dionysius of Halicarnassus also mention that some writers, including Polybius of Megalopolis, say that the town was named after Pallas, who was the son of Heracles and Lavinia, the daughter of Evander, and when he died his grandfather raised a tomb to him on the hill and called the place Pallantium, after him.
Already during Augustus' reign an area of the Palatine Hill was subject to a sort of archaeological expedition which found fragments of Bronze Age pots and tools.
Modern archaeology has identified evidence of Bronze Age settlement in the area which predates Rome's founding.
"[citation needed] The two-story house appears to have been built around an atrium, with frescoed walls and mosaic flooring, and is situated on the slope of the Palatine that overlooks the Colosseum and the Arch of Constantine.
The Republican-era houses on the Palatine were overbuilt by later palaces after the Great Fire of Rome (AD 64), but apparently this one was not and perhaps was preserved for an important reason.
Many others have denied its identification with the Lupercal on topographic and stylistic grounds, and believe that the grotto is actually a nymphaeum or underground triclinium from Neronian times.