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Opened around the end of the First World War, the Palace was a conversion from a shop. The cinema was operated by E R F Coleberd part time on Tuesdays and Fridays. By the 1930s the cinema was operated by Honiton Cinema Ltd as the Scala Picture Theatre and Morrison sound was installed.
The cinema was situated in Jesu Street and could seat 220. There was a 10' deep stage and 21' wide proscenium. The cinema was taken over by E M Flay after World War II and seating was reduced to 184. The cinema closed in the early 1960's. Today it is again a shop.
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