Palma School was founded in 1951 through the efforts of Monsignor Thomas J. Earley and dedicated laypeople, including Joseph Piini and Lloyd Stolich.

Their collective dream of Catholic secondary education was realized in September, 1951 when Palma opened its doors to boys and girls as a co-institutional school.

Palma continued to operate as a co-institutional school for thirteen years when, in 1964, a separate facility for girls was opened a few blocks away.

In 2024 Palma returned to its co-institutional roots and began accepting girls beginning in the 2024-2025 school year.

The football, basketball and cross country teams have won NorCal and Central Coast Section championships.