Spanning over 5.44ha with a floor space of 21,000 sq/m., its RM 210 million cost should come as no surprise, looking at the distinctive facade and features the building displays.

Located near the Titiwangsa Lake at the junction of Jalan Tun Razak and Jalan Kuantan, Istana Budaya was designed by a local architect, Muhammad Kamar Ya'akub. It portrays a blend of the best aspects of the Malay culture such as the following:

1. "Wau Bulan" - this traditional Malay kite is used as the main motive of the theatre's floor.
   
2. "Sirih Junjung" - a multi-tier floral arrangement of "sirih" or betel leaves used as a symbolic piece for Malay weddings, festivities and welcoming ceremonies is reflected in the entire roof of the theatre.
   
3. "Rumah Melayu" - a typical Malay house pattern is the general layout of the building. It has three major sections: the lobby is the "serambi" or verandah, the auditorium represents the "rumah ibu" (living room) while the main stage and rehearsal hall is equivalent to the "rumah dapur" or kitchen.
   
4. "Tangga" - staircases ("tangga") that lead to the grand entrance depict the staircase of a traditional Melaka house.
   
5. "Tingkap" - the Royal Boxes follow the patterns of a Malay house's windows ("tingkap"), all large and spacious.
   
6. "Balairong Seri" - the auditorium is evidently designed similar to this royal palace hall of the olden days.
   
7. "Rebana Ubi" - the theatre lobby on the third floor takes the shape of this traditional Malay drum

In addition, Banyan Leaf, which signifies the beginning of Wayang Kulit or shadow play also decorates the theatre lobbies, and its walls are elegantly adorned by the exquisite artwork by Malaysia's National Arts Laureate, Dato Syed Ahmad Jamal.