Palacios is a small city located in Matagorda County, Texas, United States. It is situated on the coastal plain of the Gulf of Mexico and is known for its fishing industry and scenic views of the Tres Palacios Bay. The city has a population of around 4,637 people as of the 2020 census. Palacios offers various recreational activities including boating, fishing, birdwatching, and hunting. The city also has a historic downtown area with shops, restaurants, and historical sites. Overall, Palacios is a charming coastal city with a laid-back atmosphere and natural beauty.