The 1920s. Palucca was dancing on stages everywhere. She was a star, admired by the most important artists of her time. Visual artists such as Paul Klee, Wassily Kandinsky and László Moholy-Nagy saw her dance, communicated with her and impressed her. On 29th April, 1927, Palucca performed at the Bauhaus in Dessau. Moholy-Nagy wrote about Palucca, "She compresses space and structures it: it expands, drops and floats - fluctuating into all directions."
Even early on, Palucca was not satisfied with simply appearing on stage and dancing. She was a rebellious young woman with an energy which she wanted to pass on to her generation. In 1925, she founded her own school in Dresden. She gave lessons first in her own premises and, later, in rented rooms.
During the period of National Socialism, she was no longer allowed to teach free dance because of her Jewish ancestry. Her school was closed in 1939, but she was permitted to continue dancing and even appeared in the Olympic Games of 1936 in Berlin. Her contemporaries were enthralled – even in frontline theatres. Apparently, even representatives of the Reich Chancellery were fascinated. She was never banned from dancing.