Palermo is an unincorporated community and census-designated place (CDP)[5] located in Upper Township, in Cape May County, in the U.S. state of New Jersey.

[6][4] Palermo is located 14 mi (23 km) northeast of Cape May Court House.

[7] An early settler, Henry Young, arrived in New Jersey aboard a whaling vessel prior to 1700, and established a plantation extending west from Palermo.

[10] The Ocean City Railroad constructed a line through Palermo, and a station was erected there in 1897.

Several Upper Township farmers complained about the route, including one from Palermo who claimed "the parkway went through the center of his piggery".