The Portland Drive Terrace was covered in the late 1950s. Soon afterwards, floodlights were installed and these were first used in a match against Preston North End in October 1958. These are the tallest free standing floodlights in Scottish football, standing at 85 feet. The current main stand was constructed in 1965, soon after the original had burned down.
On the east side of the ground "Jimmy Jolly's Bullshed", later known as the "Coo Shed", was originally named after one of the founder members of the club in 1919, when it was built around 1933 as the club reached the first division for the first time. This was replaced by an all seater stand in 1995 and was named the East Stand. A challenge game was held in April 1995 to commemorate the opening of the new stand and Queens' 75th anniversary against Rangers. Guest players for Queens in the 2–2 draw included Davie Irons, future managers Rowan Alexander and Ian McCall, Ted McMinn, Andy Thomson. Scenes from the film A Shot at Glory, starring Robert Duvall, were shot at Palmerston Park during 1999.
The club was relegated to the Scottish Second Division in 2012, but carried out some remedial work to the stadium, including new water systems and ticket offices. A redevelopment of the 1960s main stand is planned. During March 2013, Queen of the South were given approval to install a new 5G artificial pitch at Palmerston Park for the start of the 2013–14 season. After the club's final home game of the 2012–13 season, the club sold the turf for £10 per square yard as well as auctioning seven special lots. These were the four corner plots, the two penalty spots and Ryan McCann's 84 yard spot. Structure and facilities Of the 8,690 capacity, there are 3,377 seats. Up until the late 1990s the stadium had a capacity of 8,352, but this was reduced when the Terregles Street end terracing was closed. It was given a safety certificate in September 2014, adding standing capacity of 1,968. There are 2,192 seats in the all seated East Stand. For the 2012–13 season this stand was known as the Galloway News Stand, then from 2013–14 until the 2017–18 season this stand was known as the Rosefield Salvage Stand. For the 2018–19 season, Queens centenary, the stand will be known as the BDS Digital Stand. Opposite this is the main stand, built in 1965, which now has 1,185 seats. The main stand is a small, classic looking covered stand, where the seating area is raised. There are standing terraces for fans to the left and in front of this stand. Since the 2013–14 season the main stand has been known as the Gates Power Transmission Stand. The Portland Drive Terrace, with a capacity of 3,345  is a traditional standing area and is now the largest area of covered terracing in Scotland and is reminiscent of all British football grounds prior to the Hillsborough disaster. The terrace is notable for the clock face mounted in the centre of the roof that used to be an advert for a local hostelry, where Time to Visit The Hole I' The Wa' was written underneath the clock. Since the 2015–16 season the terrace has been known as the Oakbank Services Terrace. The grass playing surface was widely recognised for its good condition. Iain McChesney described the surface as simply a 'Good park'. Jocky Dempster later said in an interview that among his reasons for signing for Queens was, "I liked the park at Queens. As you know it’s a good park, a good surface." Crawford Boyd said, "It was a lovely park, it was a treat to play on that park, a lovely playing surface." Ted McMinn commented, "Palmerston was like a bowling green, you knew when you went to kick the ball you wouldn’t get a bobble."