His formation and first works overlapped with the arrival of the Napoleonic troops in the city; thanks to the request of his mentor, who was a member of the Senate and representative of the Bolognese provisional government, Palagi designed uniforms, medals, and emblems with the symbols of Liberté, égalité, fraternité to be used in letters and cards for the Directory.

Later, the new emerging bourgeoisie entrusted him with the creation of the monumental sepulchres of Edoardo Pepoli (1801), Girolamo Bolognini Amorini (1803), and Luigi Sampieri (1804) at the Certosa di Bologna.

This influence is present in the Bolognese painter's portraits, in which he demonstrates a careful analysis of the models' features, as well as in his historical paintings and landscapes, which lead Palagi to conduct accurate research on ancient history and the study of nature.

In the Lombard capital the private clientele, wider and more stimulating than the one in Rome, lead with to dedicate himself to portrait painting, especially of Giuseppe Bossi and Andrea Appiani; the public commissions asserted him as the portrayer of the protagonists of the Restoration.

By the end of the decade Palagi obtained the commission for the architectural and decorative intervention, and sculpture design of the Palazzo Arese Lucini and the Villa Tittoni Traversi.