A palace is a grand residence, often serving as a royal residence or the home for a head of state or some other high-ranking dignitary, such as a bishop or archbishop. The word is derived from the Latin name palatium, for Palatine Hill in Rome which housed the Imperial residences.

A structure qualifies as a palace if it serves as the official, grand residence of a head of state, a monarch, or a high-ranking religious leader (such as a Bishop). Unlike a "castle," which is primarily a fortified military structure built for defense, a palace is built for luxury, administration, and the display of power. Historically, palaces are characterized by large windows, expansive gardens, and ornate interior decorations that would be impossible in a defensive castle with thick, windowless walls. In 2026, the definition has expanded slightly in common parlance to include any exceptionally opulent mansion, but a "true" palace usually carries a formal "sovereign" designation, such as Buckingham Palace or the Palace of Versailles. A key distinguishing feature is that a palace is a "seat of government" as much as a home; it contains throne rooms, grand ballrooms, and offices for state officials. If the building has moats, battlements, and arrow-slits, it is a castle; if it has marble galleries and gold-leaf ceilings meant to impress diplomats, it is a palace.