The Picasso Room features some fifty works by Picasso which Josep Palau i Fabre has either collected during the course of his life or which were given to him by Picasso himself, with whom he maintained a friendship that lasted 25 years.
The room contains works belonging to a great variety of eras and styles. Highlights of the collection include some of Picasso's academic studies, which are probably among his best known. There is likewise a monstrous self-portrait of Picasso, and a little theatre that Picasso made for his daughter Maya. Also on display are a number of books dedicated to Palau i Fabre by Picasso, indicating the friendship between the two figures.
The Palau Foundation currently has the second largest collection of Picasso's work in Catalonia, after the Picasso Museum in Barcelona.