A palace is a grand residence, especially a royal residence or the home of a head of state or some other high-ranking dignitary, such as a bishop or archbishop. The word itself is derived from the Latin name Palātium, for Palatine Hill, one of the seven hills in Rome. In many parts of Europe, the term is also applied to ambitious private mansions of the aristocracy. Many historic palaces are now put to other uses such as parliaments, museums, hotels or office buildings. The word is also sometimes used to describe a lavishly ornate building used for public entertainment or exhibitions.

The word "palace" comes from Old French palais (imperial residence), from Latin Palātium, the name of one of the seven hills of Rome. The original "palaces" on the Palatine Hill were the seat of the imperial power while the "capitol" on the Capitoline Hill was the religious nucleus of Rome. Long after the city grew to the seven hills the Palatine remained a desirable residential area. Emperor Caesar Augustus lived there in a purposely modest house only set apart from his neighbors by the two laurel trees planted to flank the front door as a sign of triumph granted by the Senate. His descendants, especially Nero, with his "Golden House" enlarged the house and grounds over and over until it took up the hill top. The word Palātium came to mean the residence of the emperor rather than the neighbourhood on top of the hill.