Mike Donnelly's Palace Saloon occupied the lower floor of this false-front building when it opened in 1902. No cost was spared in furnishing the roomy and well appointed saloon.

Mike and his brother John celebrated the Grand Opening with a roast pig supper "with all et ceteras."

During Prohibition, the saloon operated briefly as a restaurant.

The original bar and much of the ornate interior woodwork are intact.

In 1993, the Native Sons of the Golden West mounted a marker on the saloon: "Farthest westernly bar in the continental United States."

The Palace Saloon contributes to the Ferndale Main Street Historic District which was listed on the National Register of Historic Places in 1993.