Housed in a 17th-century Baroque palace, nestled up against Prague Castle's terraced gardens, few restaurants can match this Malá Strana establishment for romance and atmosphere, especially when the terrace is open in summer.

Owned by celebrated restaurateur Roman Řezníček, whose stable includes three other fine eateries (U Zlaté studně, Sovovy mlýny, and U Malířů), Pálffy Palác is a perfect blend of the old and the new. Under the watchful gaze of portraits of famous composers, the main dining room is a stately blend of candelabras and crystal, set off by colorful fruit bowls and flower arrangements.

The terrace, meanwhile, offers inspiring views up to the Castle. Despite the grandeur of the setting, however, this is a surprisingly relaxed environment, and given the quality of the modern international cuisine on offer, also surprisingly affordable.

The menu changes frequently, but typically adventurous items include "fallow deer steaks marinated in St. Hubert seasoning with herb dumplings and rosehip-orange sauce" and "grilled red scorpion fish filled with Greenland shrimps and dill". There's also a fine wine selection, plus lunch and Sunday brunch specials. Although the restaurant only seats 60 people, Pálffy Palác is able to host larger functions in the adjoining concert hall. (The building also houses a section of the Prague Conservatory.)

There's also a lounge that holds 50 people, while the terrace seats 100.