The Palace Theatre is one of the main theatres in Manchester, and is a 'sister' theatre to the Manchester Opera House on Quay Street. The theatre, originally known as 'The Grand Old Lady of Oxford Street', opened on 18 May 1891, having been built at a cost of £40,500. The opening presentation, was the ballet Cleopatra, and the venue has played host to a plethora of popular performances ever since. During the early part of the 20th century it came into its own, with artists such as Danny Kaye, Gracie Fields, Charles Laughton, Judy Garland, Noel Coward and Laurel & Hardy making appearances.

Broadway musical The Wedding Singer had its UK premiere at the theatre in 2008 and in December 2008 to March 2009 the theatre hosted a season of the UK tour of Mary Poppins, one of only 6 theatres in the country to accommodate the tour, both events further cementing the theatre's reputation as the flagship venue of the North of England. In July 2009, during the Manchester International Festival, the theatre staged the world première of Rufus Wainwright's opera Prima Donna.