Palacios attended Berkeley Carroll School in New York City and played college baseball at Towson University.

[7] After beginning the 2022 season with the Triple-A Columbus Clippers, Palacios was recalled by the Guardians on April 25, 2022, and made his major league debut that same day, starting in left field.

On June 11, 2023, Palacios was designated for assignment by the Guardians after Cody Morris was activated off of the injured list.

On January 5, 2024, the Cardinals traded Palacios to the Tampa Bay Rays in exchange for Andrew Kittredge.

[12] On the international level, Palacios is eligible to represent the Netherlands and Curaçao (through his Curaçaoan mother), Puerto Rico (through his father), and the United States (his birthplace).