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The Paul Paletti gallery was founded in July 2001 by attorney and photography collector Paul Paletti. The idea for the gallery manifested soon after the office building on Market Street was purchased by Paletti and his partners for their law offices. Six months of renovation included specific layout and lighting for a photographic art gallery.

The gallery's debut to the Louisville art community came in July 2001, with its participation in the second Photo Biennial, showing the photographs of Rolfe Horn. The gallery became one of the original participants in the First Friday Gallery Hop, a public event occurring on the first Friday of each month. Currently 50+ Louisville galleries and venues on Main and Market Streets extend their hours, offer refreshments, and welcome thousands to view the artwork.