The Theater im Palais (T.i.P.) (Theatre in the Palace) is home to the Institute of Drama and its rehearsal spaces and stage areas. The building, which is separated from the palace itself by the courtyard, was completed in 1845 and was originally used as stables. Since 1984 it has been used by the University of Music and Performing Arts. In 2013/14 the building was renovated by the Bundes Immobilien Gesellschaft (BIG) based on plans by architect Johannes Wohofsky, and extended with a new glass foyer, giving a view of the old facade. The most striking feature of the new exterior is its "curtain", made from gold-coloured, perforated aluminium sheet, which accentuates the building visually and provides shade.
The historic clinker brick facade with masonry round arch elements lends particular charm to the TiP stage, which has a classic proscenium/platform layout.
The Probebühne (rehearsal space) is a popular venue for events, not least because of its extravagant arched ceiling.