The west coast railway was built in 1886, linking the town to Wellington, and Palmerston North benefited from a booming pastoral farming industry.

Linton Military Camp, Palmerston North Hospital, and the establishment of Massey University (in 1927) have reduced the dependence on farming due to more skilled workers, since the early 20th century.

On a visit in 1859, John Tiffin Stewart, an employee of the Wellington Provincial Council,[13] was shown the Papaioea clearing by the Rangitāne chief, Te Hirawanu, and noted its suitability for a "good site for a township".

Stewart returned in 1866 on behalf of the Wellington Provincial Council (under whose jurisdiction the new purchase fell) and made the original survey and subdivision in the Papaioea forest clearing.

[12] The settlement, named Palmerston to commemorate the recently deceased Prime Minister of Great Britain, was laid out according to Stewart's plan, consisting of a series of wide and straight streets in a rectangular pattern.

On 3 October 1866, Palmerston was formally endorsed after Isaac Earl Featherston (Wellington Provincial Superintendent) signed a proclamation defining the boundaries of the settlement.

By 1877, when the Borough Council came into existence, Palmerston North was an isolated village in the midst of the native forest that covered inland Manawatu.

[citation needed] The opening of the nearby Longburn Freezing Works provided employment, while the Borough Council instigated more infrastructural schemes such as the sewerage system.

In 1967, city boundaries were again extended to include land in Aokautere, Kelvin Grove, Milson, Amberley (Westbrook) and Awapuni as part of future growth for the next 25 years.

In 1971, a competition to design a civic building for the vacant railway land at the Square, was won by Wellington architects, Maurice and John Patience.

In 1976, the Manawatu and Oroua rivers flooded, 24-hour rainfall records in Feilding and Palmerston North were exceeded and some residents from both locations were evacuated.

[23][24] Although the land Palmerston North is situated on is bounded by the lofty Ruahine and Tararua ranges in the east and south respectively, the city has a predominantly flat appearance.

[27] Close to the city is the largest electricity-generating series of wind farms in the southern hemisphere, with 286 turbines in the Tararua and Ruahine Ranges providing power for approximately 50,000 homes.

The Rangitīkei electorate covers the remainder of the territorial authority, including the Palmerston North urban area south of the Manawatū River.

[46] The Palmerston North Courthouse in Main Street (east) is a combined District and High Court and serves the city and surrounding area.

Originally part of the Papaioea clearing, The Square is a seven-hectare park of lawn, trees, lakes, fountains, and gardens in the centre of the city.

It was opened in 1897 to commemorate the 60th Jubilee of Queen Victoria's reign, and includes a native bush reserve along the river bank, formal botanical gardens, playgrounds and the Café Esplanade, all connected with walking and bicycle tracks.

The Wildbase Recovery visitor centre and aviary for recovering wildlife opened in 2019 and is run in partnership with Massey University's Veterinary Hospital.

Memorial Park has a splash pad, pool, playground, football pitch and a duck pond, within easy reach of the city centre.

The city council since 2012 has been beautifying the banks of the Manawatū River, opening up previously neglected areas into more accessible recreational parks and reserves.

Part of this development is He Ara Kotahi, a 7.1 km (4.4 mi) pedestrian and cycle track that connects the city to Massey University, adjacent research institutes and Linton Military Camp, all located on the south side of the Manawatū River.

Near the Square is the Youth Space, which opened in September 2011 as a dedicated place for Palmerston North's many young people to congregate in a safe environment.

[75] Youth space is free to all, and provides table-tennis, gaming consoles, musical instruments, library books, iPads, a kitchen, and other services.

These theatres include Top comics including John Clarke, Jon Bridges, Jeremy Corbett, Tom Scott all come from Palmerston North as do stage, television and film performers Paul Barrett, Shane Cortese, Kate Louise Elliott, Simon Ferry, Greg Johnson, Jeff Kingsford-Brown and Alison Quigan[76] and drag performer Spankie Jackzon.

Representation at a national level is predominantly provincial-based, meaning most sports teams representing Palmerston North also draw their players from other towns from around Manawatu.

[85] The Keith Street power station continued to regularly generate electricity until the Inter-Island HVDC link was commissioned in 1965, when it was relegated to standby duty before finally being decommissioned in 1992.

[100] The Manawatu River Pathway is great for family or beginners riders, as it is all flat to mildly contoured, with some limestone sections, as well as wide cement paths.

Palmerston North has a fairly comprehensive 65 km[101] on-road bicycle lane network, particularly in high traffic areas, to make it safer for people to get around the city by bike.

Daily services run to the nearby towns of Linton, Feilding (311 bus via Palmerston North Airport), Foxton, Levin and Marton.

[113] The airport has regular services to domestic destinations including Auckland, Christchurch, Hamilton and Nelson operated by Air New Zealand and Originair.