The Palace Courtyard was a sizable area situated in Theed, the primary city and capital for the human inhabitants of Naboo. Constructed on a section of Theed heavily damaged by Trade Federation Armored Assault Tanks during the Invasion of Naboo, the Courtyard was designed to foster and promote enlightened thinking and practices. This large semi-circular space, featuring a central islet, included multiple bridges and fountains. The structures within it comprised several domed buildings and a sweeping, curved colonnade along its perimeter, housing a holographic display of artists and philosophers from Naboo's past. It connected to the Royal Palace via a lengthy thoroughfare known as the Palace Plaza.


Within Star Wars: Episode II Attack of the Clones, the Palace Courtyard appeared to be situated in front of the Palace, directly linked to it, suggesting it replaced the earlier Palace Plaza, seen in Star Wars: Episode I The Phantom Menace. However, upon the release of the original trilogy on DVD format in 2004, footage of the Palace Plaza was inserted into the ending sequence of Star Wars: Episode VI Return of the Jedi, thus creating an inconsistency between the films. The location of the Palace Courtyard was altered in the 2005 film Star Wars: Episode III Revenge of the Sith. The Courtyard now faces the Palace Plaza with its two arms, and is distinct from the Palace itself.
The short Courtyard scene in Attack of the Clones was shot at the Plaza de España in Seville, Spain on September 13, 2000. Industrial Light & Magic significantly enlarged the plaza, originally a half-circle, in post-production to create the version seen in the movie.