The stainless steel portraits, by Lee Simmons, have been hung by the stage door in Great Marlborough Street, Oxford Circus, as part of refurbishment work at the theatre.
Andrew Lloyd Webber, who owns the Grade II-listed building, said he wanted to pay tribute to “the extraordinary range of artists” who had passed through the Palladium.
The composer pulled together “a tiny committee of people old enough to remember some of these artists”, including former BBC and ITV chairman Lord Grade and theatrical agent Laurie Mansfield. Stars who had played at least two seasons at the theatre were considered.
Other featured artists include Sammy Davis Jr, Dame Shirley Bassey, Bing Crosby, Sir Bruce Forsyth, Nat King Cole, the Two Ronnies, Max Miller, Judy Garland, Arthur Askey and Bob Hope.
The wall will be an ongoing project with room left to add new names.