Situated on the edge of the University of Pennsylvania campus sits the historic Palestra basketball gymnasium. The Palestra was given its name by Greek professor Dr. William N. Bates, who felt the name logical because in ancient Greece, young men would compete in a variety of events in a rectangular enclosure attached to the gymnasium to the view of all who would come, or a "Palestra." The name was widely accepted by the organizing committee for it fit the specifications: authenticity, dignity, descriptive, and novel. Since its opening in 1927, The "Cathedral of Basketball" has hosted more games, more visiting teams and more NCAA tournaments than any other facility. It is home to Quakers men's and women's basketball, wrestling, women's volleyball, and also hosts the Ivy Classic gymnastics championship.

The Philadelphia "Big 5" (Penn, Saint Joseph's, Temple, La Salle, Villanova) originally played all of its round-robin games at the Palestra and today, the intra-city conference still plays about half of the Big 5 matchups at the gym. Another highlight and must-see of every season is the rivalry between host Penn and its Ivy League guest, Princeton. Other events that have been held at the Palestra include trade shows, banquets, and convocation.

In the fall of 2008, the Palestra's historic basketball floor was replaced with a more modern surface. The legendary gymnasium seats over 8,100, and includes a meeting space known as the Class of '71 Room, which is available for rent during Palestra events.