Source: Tafsir al-Ahlam al-Kabir (Ibn Sirin)
The palace in a dream is a man of high status and righteousness. Entering it indicates marriage, gaining authority, or achieving a wish. An unknown palace indicates Paradise for the pious and Hellfire for the disobedient.
Source: Ta'tir al-Anam fi Ta'bir al-Manam (Al-Nabulsi)
The palace indicates righteous deeds and high status in this world and the Hereafter. Whoever builds a palace will gain high status, kingship, and authority. Whoever sees himself in a palace is safe from fear and will attain joy.
Source: Al-Isharat fi Ilm al-Ibarat (Ibn Shahin)
The palace is interpreted as joy, security, and prestige. For the dreamer, it is honor, prestige, and high status. The demolition of the palace indicates the loss of blessings or the death of a great man.