The proposals would see the 132-year-old six-storey structure become home to tech, start-up and creative businesses.
Works include the reinstatement and restoration of the auditorium balustrading. A section of tiered seating would be retained to form social seating and presentation space, with the ability to accommodate small scale events.
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The interior retains the existing floors that look down towards a stage - as theatre audiences once would have done.
The application for planning permission and listed building consent - just submitted to Swansea planners - show the building's structure maintained with the retention and restoration of original historic features and the reinstatement of other historic features.
The vision for the wedge-shaped grade two listed city centre building includes workspaces for more than 130 people.
The plans have been assisted by the public through the Friends of Place Theatre Group and a dedicated Facebook page and by others through engagement with Welsh historic monuments body Cadw, council officers, the Theatres Trust and the Victorian Society.
On behalf of Swansea Council, GWP Architecture is leading the Palace project.
