Lesbian, gay, bisexual, and transgender (LGBT) people in Palau do not possess the same legal protections as non-LGBT residents, and may face social challenges that are not experienced by others.

[3] After recommendations from other countries at the Universal Periodic Review in October 2011, the Palauan Government promised to fully decriminalise homosexuality.

This won't be positive for us at the UN level as the trend worldwide is opening up to these individual rights, but we are taking a step backward."

[14] In Palauan, the terms mengol a otaor (which literally translates to carrying a large driftwood) and menga tuu (banana eater) refer to homosexual men.

[15][16] Several gay Palauans have chosen to emigrate to neighboring Guam or the United States due to societal rejection they may face at home.