The Flag of Palau was adopted on 1 January 1981, when the island group separated from the United Nations Trust Territory.

As with the flags of several other Pacific island groups, light blue is the color used to represent the ocean and the nation's place within it.

The light blue of the field symbolizes the Pacific Ocean, and also represents the transition from foreign domination to self-government.

At this time of the month, celebrations, fishing, sowing, harvesting, tree-felling, and the carving of traditional canoes are carried out.

According to the Palauan government website, the flag is a golden-yellow full moon slightly off-centered on a field of sky blue.