Formal:
* The royal family resided in the grand palace, surrounded by manicured gardens.
* The ambassador presented his credentials to the king at the palace.
* The palace was a symbol of power and wealth.
Informal:
* My friend's house is like a palace compared to my tiny apartment.
* The ice cream palace was the best place in town for a treat.
* The old building on the corner was rumored to be a haunted palace.
Figurative:
* The children built a sandcastle palace on the beach.
* Her mind was a palace of memories and dreams.
* He treated her like a princess in her own personal palace.
The context will determine the best way to use "palace" in a sentence.