The Golden Palace begins where The Golden Girls had ended, in the quartet's now-sold Miami house. With Dorothy Zbornak having married and left in the previous series finale, the three remaining cast members (Dorothy's mother, Sophia Petrillo, Rose Nylund, and Blanche Devereaux) decide to invest in a Miami hotel that is up for sale. The hotel, however, is revealed to have been stripped of all of its personnel in an effort to appear more profitable, leaving only two employees: Roland Wilson, the hotel's manager, and Chuy Castillos, the hotel's chef. This requires the women to perform all the tasks of the hotel's staff.

The fanatically uncompromising Len Rowan and his family insult and terrorize the citizens of a small town for years. One day the comment of a saleswoman about Len's son not being able to pay his sweets triggers off his persecution complex. As revenge for the believed insult, the whole family starts stalking the shop owner and her husband... until this escalates and the old man gets badly injured. Len is arrested, but gets off, free on bail. His clever attorney delays the court session for more than a year - while Rowan keeps threatening the witnesses. But then, the people feel they've had enough of this and decide to take the law in their own hands...