It originally showed silent movies and had vaudeville shows, and later talking movies & local high school plays & graduations.

In 1934 the Palace was renovated with the interior redecorated and a large marquee added at the entrance. The Colonial style façade was covered by an Art Deco-style front in 1938.

In the 1930's the Hopatcong Broadway Players were a summer troupe of accomplished actors, directors and writers who used the Palace to practice theatrical productions before taking them to New York City and Broadway.

From the late 1960s onward the Palace faced competition from television and then multi screen theatres in the new shopping centers in the area. With a decline in attendance, the theatre was converted into a warehouse in 1981, it's history threatened.

In 1995, The Growing Stage, a Morris County Theatre venture for children, purchased the Palace Theatre and began the process of restoration with the goal of turning it into a regional center for the performing arts. They have fully succeeded and today the Growing Stage occupies the fully-restored Palace with a 240-seat theatre and balcony/art gallery with hand-painted murals. A modern concession area, rehearsal space and classrooms have made The Growing Stage at the Palace Theatre a center for many families today.

The Palace Theatre in Netcong is listed on the National Register of Historic Places.