After the Old Palace burned down, the new town residence for Margrave Friedrich von Brandenburg-Bayreuth was begun by Joseph Saint-Pierre in 1753. Margravine Wilhelmine had considerable influence on its final form, designing some of the rooms herself, including the Cabinet of Fragmented Mirrors and the Old Music Room with its pastel portraits of singers, actors and dancers. The Palm Room with its outstanding walnut panelling is a typical example of the Rococo style in Bayreuth.

Palm Room

On the ground floor of the New Palace today the museums "Margravine Wilhelmine's Bayreuth" and "Bayreuth Faience – Rummel Collection" with outstanding items from the Bayreuth Manufactory can be seen. The faience collection covers the whole period of production from its beginnings until 1788. The Gallery Rooms (Branch of the Bavarian State Galleries) contain Dutch and German paintings from the 18th century. On the first floor is the exhibition "Chivalrous miniatures – Dr. Löer Collection".

The rooms of the small but remarkable Italian Palace are an impressive example of the "Bayreuth rococo" style in its later manifestation with the flower tendrils, trellis rooms and grottos that were its typical features.