First mentioned in 1370, the Altmarkt between Postplatz, Neumarkt and Pirnaischer Platz forms the historical centre of the city. The centre of medieval Dresden was also a frequent venue for parades and animal races in the Baroque period. The Old Town Hall was also located here. After the severe destruction, the reconstruction of the city centre began here in 1953.

In the 1960s, the north side of the square was built over with the Palace of Culture, which serves as a multi-purpose hall for concerts, congresses and events in the GDR. After extensive modernisation, the Kulturpalast opened in 2017 as a cultural centre in the middle of Dresden's old town. The new concert hall of the Kulturpalast is home to the Dresden Philharmonic Orchestra; the central library and the well-known cabaret "Die Herkuleskeule" complete the cultural offerings of the house.

Today, markets are held regularly on the Altmarkt. Numerous events take place on the Altmarkt as part of the city festival, and the famous Dresden Striezelmarkt takes place every year during Advent.