Dillwynia palustris is a species of flowering plant in the family Fabaceae and is endemic to the Snowy Mountains in New South Wales.

It is a weakly ascending to low-lying shrub with glabrous stems, linear, spirally twisted leaves and orange or yellow flowers with red markings.

Dillwynia palustris is a weakly ascending to low-lying shrub that typically grows to a height of 10–50 cm (3.9–19.7 in) and sometimes forms mats, the stems and leaves usually glabrous.

Flowering occurs in January and early February and the fruit is an oval pod 4.5–5.5 mm (0.18–0.22 in) long.

[3] This dillwynia grows in the ecotone between open woodland with a grassy understorey and swamps with permanent water.