This place has some interesting architecture and also has the entrance to the Defenders of Dubrovnik room (which IS worth seeing). Note that Maro and Baro, the "Green Men", used to be housed here, but are now in the Rector's Palace.
Sponza Palace is used for a wide variety of purposes - over the few months we've been in Dubrovnik, I've seen it used as an art gallery, for craft sales, for small concerts, and also left empty. It is pretty with arched porticos and an open courtyard - and if you go late in the day, it's often free. The hours are somewhat erratic in the off-season, so it's worth just stopping by to see if the door is open if you have time. There seems to sometimes be a person sitting at a table near the entrance who takes money. If the table isn't there, you can just pop in to look around without paying.
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