Palghar plays a crucial role in Western Line of the Mumbai Suburban Railway in the busy Mumbai-Ahmedabad rail corridor.

Various communities inhabit Palghar, with the predominant castes being the Kunbi, Mangela, Vaity, Macchimar, Bhandari, Warli (Adivasi), Katkari, Malhar Koli, Vanjari, Vadval, and Mali (Sorathi).

Fishing forms a significant part of Palghar's trade and diet and plays a crucial role in cultural events.

[8] Tourist attractions in the district include: The economy of Palghar is primarily driven by the primary and tertiary sectors.

As the administrative seat of the Taluka and District, Palghar hosts numerous government offices, providing employment opportunities to many residents.

[9] Agriculture, Animal husbandry, dairy farming, and fisheries are extensively practiced in the rural areas surrounding the city, playing a significant role in fueling the local economy.

Additionally, the region's secluded beaches were once favored by smugglers who used them to offload goods and transport them to Mumbai by road to evade customs.

The town serves as a divisional head of the Maharashtra State Road Transport Corporation (MSRTC), providing direct connectivity to several towns across Maharashtra and Gujarat, including Surat, Vapi, Valsad, Vadodara, Bharuch, Ankleshwar, Anand, Mumbai, Ahmedabad, Miraj, Sangli, Pune, Vaduj, Thane, Ulhasnagar, Bhiwandi, Aurangabad, Ahmednagar, Kalyan, Alibag, Nandurbar, Bhusaval, Shirdi, and Nashik.