Until 1994 Palau had been a part of the United Nations Trust Territory of the Pacific Islands, administered by the United States.

On May 25, 1994, the United Nations Security Council ended the trusteeship for the Palau district, and Palau became independent on October 1, 1994.

Diplomatic relations between the U.S. and Palau were established on December 6, 1996, when U.S.

Ambassador to the Philippines Thomas C. Hubbard was concurrently accredited to Palau and presented his credentials; he remained resident at Manila.

The ambassadors to the Philippines continued to represent the U.S. until October 10, 2004, when the U.S. Embassy in Koror was established, with Deborah L. Kingsland as Chargé d’Affaires.