His maternal grandfather was Joseph Raphael ben Hayyim Hazzan (1741–1820), chief rabbi of İzmir.

[1][3] By 1854 or 1856, he had become Hakham Bashi or Chief Rabbi of Smyrna, appointed by Sultan Abdülmecid I during the Tanzimat period.

In 1867, he received a Greek Orthodox delegation: SMYRNA.—Interchange of Visits.—We are happy to learn that a most friendly feeling prevails at Smyrna among the ecclesiastical heads of the several religious bodies.

The Greek Archbishop, accompanied by his clergy, lately went to pay a visit to the Chief Rabbi, Haim Palacci.

[23]Following a murder on March 17, 1859, local police apprehended a Greek meat butcher and Jewish broker as suspects.

Rav Hayim Palaçi (as his name appears in modern Turkish) wrote to Baron Lionel de Rothschild for support and protection.

[5] By 1865, attempts by secular leaders of Izmir's Jewish community to exploit Palachi's declining health led to communal conflict.

In November 1865, an administrative committee forced Pallache to accept its oversight, after which a group of lay leaders purchased at reduced cost the concession for the gabelle tax on kosher food and alcohol.

Widespread opposition to the Ottoman decision led to delay, repeal, and finally reinstitution of Pallache by October 1867.

[1] Historian Stanford J. Shaw describes the conflict in his book The Jews of the Ottoman Empire and the Turkish Republic (1991).

Jewish members of the Izmir community asked their vali (governor) to hold off, while they sent a mission to Istanbul.

[9] (A longer description appeared in the French L'Histoire des Israelites de l'Empire Ottoman by Moïse Franco in 1897.

"His funeral hearse was attended by all of the city's dignitaries",[1] escorted by a battalion of troops, an honor given by the Turkish authorities to only two or three chief rabbis.

Journey into Jewish Heritage states: Rabbi Haim Palaggi... was the 'Haham Bashi' of Izmir in the middle of the 19th century, and founder of the 'Beit Hillel' Synagogue and beit madras (study hall).

"[35][40] Journey into Jewish Heritage (Zalman Shazar Center) recommends that "Rabbi Haim Palaggi's grave should be marked as a landmark for orientation, and the building of a pergola should be considered for the visitors’ comfort.

"[47] Journey into Jewish Heritage states that Palacci founded the Beit Hillel Yeshiva in the middle of the 19th century.

[1] An index for Abraham Galante's Histoire des Juifs de Torque (Jews of Turkey)[2] includes the following details about Palacci family members: [...] [...] (The first name "Nissim" appears with "Palacci" four times in the Galante index cited.

"[2]) Palacci began writing at the age of sixteen and wrote more than 70[22] or 80 religious works, published in Salonica, Istanbul, Jerusalem, and Izmir.