Harry L. Hartman purchased Mandan's two principal entertainment venues—the Grand Theatre and Rex Theater—from Rex Sanderson in early 1915. Hartman closed the Grand in October 1916 and continued operating the Rex while construction delayed the opening of his new show house.
The Hartman Photoplay Company initially planned to open the remodeled, 650-seat Hartman House on September 1, 1916. Construction pushed the opening of the renamed Palace Theatre to November 17. At a time when structural fires were common, its $25,000 (about $740,000 in 2025 dollars) brick-and-concrete construction was promoted as thoroughly fireproof.
Seven hundred people attended opening night. A newspaper reported that although the six vaudeville acts and motion pictures pleased the crowd, the theater itself was the principal attraction. Its comfortable leather-bottomed seats provided clear views of the stage. Black wall strips formed panel and latticework designs accented by flower boxes and candle lamps.
The building was described as “first class in every respect, from the box office to the dressing rooms under the stage.” Mandan Electric Company installed more than 650 light bulbs in the canopy, exterior sign, lobby, auditorium, and stage fixtures.
The Palace opened with The Pawn of Fate, starring George Beban as Pierre, a French peasant who aspired to become a great painter and traveled to Paris. The Mandan Pioneer praised Beban's ability to move audiences from laughter to tears and back again.
The venue also hosted local performances, including the Mandan Music Club's annual Christmas program. Under owner Frank Wetzstein, the theater underwent a major renovation in 1935 that included a $6,000 (about $141,000 in 2025 dollars) air-conditioning system. The equipment held the auditorium at 70°F on the hottest summer days and replaced its entire air supply every minute.
The theater building also housed the Palace of Sweets, a confectionery selling candy, fruit, cigars, and magazines. Frank Crisafulli owned the shop.
The final film shown was The Ten Commandments, starring Charlton Heston, on October 27, 1957. The Palace continued hosting live events through 1961. It was demolished in 1978 to provide additional parking for the adjacent Wells Fargo bank.