He continued on with his success displaying his excellent form, taking the team into the semi-finals of the 2005 Copa Libertadores tournament and registering 5 goals.

Chivas USA for the start of their inaugural season, but he enjoyed so much success with Guadalajara that his arrival to the United States team was delayed until August 19, 2005.

In 2006, Palencia was the team captain of Chivas USA and was also the highest paid player in MLS at that time, earning US$1,360,000 a year.

Club Toluca signed him on loan for a couple of games to reinforce its squad against Corporación Nuevo Cúcuta Deportivo in both matches of the Round of 16.

Toluca was eliminated from the tournament and Palencia did not have another opportunity to play in Latin America's biggest club championship event due to retirement.

On February 7, Palencia was called up by coach Hugo Sánchez to represent his country and play a friendly game against the United States.