In addition to its splendid, yet intimate, atmosphere, the Palace Theater is noted for outstanding acoustics and a large seating capacity. In the 1950s the theater was adapted for Cinerama, but closed in the late sixties after a breakdown of the air conditioning system. The complete restoration program included updating the theater to house live popular entertainment.

The restoration of the theater involved replacing and restoring the magnificent proscenium arch and side boxes, which had been removed for Cinerama projection. Other restored and replaced items included the gold leaf on the walls and ceiling, the crystal chandeliers, doors, and brass railings, and wall fabric.

The balcony and orchestra floors were reraked to improve sight lines, and 2,854 new seats were installed. The orchestra pit was restructured with a new pit lift accessing the lower storage level and the orchestra seating level. A new freight elevator for handling scenery and other theater equipment was added. The rear stage wall that abuts the State Theater stage wall was soundproofed with a 35-foot acoustic wall.

Exterior improvements included repairing and replacing windows, constructing a new roof, and replacing the marquee that had been demolished in the 1970s.