Palito Blanco is an unincorporated community off Farm to Market Road 735, situated fifteen miles southwest of Alice in west central Jim Wells County, Texas, United States.
The site was first settled by Mexican ranchers who, according to local legend, named the town for the hackberry trees that grew in the area; however, palito blanco is Spanish for "white stick."
A post office named Palito Blanco was established at the site in 1916, discontinued shortly afterwards, and reactivated in 1928.
In 1936, the town included one school, two cemeteries, four businesses, multiple farm units, and various dwellings.
Palito Blanco's population remained stable throughout the 1950s and 1960s, and by 1963 the community had grown to include two schools, the San José church, and a number of scattered homes.