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Palau flag

Palau

Belau

Capital:Ngerulmud
Population:20,879
Currency:US Dollar (USD)
Language:English and Palauan official in all states except Sonsoral (Sonsoralese and English are official), Tobi (Tobi and English are official), and Angaur (Angaur, Japanese, and English are official)
Palm tree on the beach

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Quick Look Factsheet

A multi-page overview of Palau.

Palau Factsheet

Customs and Culture

Cultural Attributes

Palauan culture is a rich tapestry woven from ancient Micronesian traditions, clan-based social structures, and centuries of contact with Spanish, German, Japanese, and American influences. Despite this layered history, Palauans have maintained a remarkably strong sense of cultural identity, anchored by customary practices that continue to govern daily life alongside modern institutions. At the heart of Palauan society is the matrilineal clan system, known as "kebliil." Membership, inheritance of titles, and land rights are all passed down through the mother's line, giving women a foundational role in social organization. Ten clans exist within each village, and the heads of these clans form councils that retain real political and ceremonial authority even today. One of the most distinctive cultural practices is "omengat," a traditional ceremony performed after a woman gives birth to her first child. The new mother undergoes a period of healing baths using heated seawater and is honored with gifts of Palauan money — finely crafted glass beads and whale teeth called "udoud" — which remain a form of cultural currency used in marriages, funerals, and other major life events. This traditional money holds no monetary exchange value in modern commerce but carries deep social and spiritual significance. Storytelling, chanting, and the art of "storyboards" — carved wooden panels depicting Palauan legends and daily life — are important forms of cultural expression. Storyboard carving emerged in the 20th century as a way to preserve oral traditions in visual form and has become one of Palau's most recognized art forms. The bai, a traditional meeting house built without nails using interlocking beams, serves as a gathering place for male elders and clan councils. These structures are adorned with painted carvings representing historical events and cultural narratives, functioning as living repositories of community memory. Fishing remains deeply embedded in Palauan identity, not only as a livelihood but as a spiritual and communal activity. Traditional fishing rights are controlled by clans and chiefs, reflecting the enduring connection between culture, environment, and governance that defines life in Palau.

Palm tree on the beach

Sanctuary of Pristine Reefs and Island Spirits

Islands of Palau undercut

Holidays

  • Constitution Day

    7/9

    Independence

Dates of Interest

  • July 9th

What social customs and traditions should I be aware of in Palau?

Palauan life is governed by a matrilineal clan system called 'kebliil,' where titles, inheritance, and land rights pass through the mother's line, giving women a foundational social role and clan councils real authority.

Do

  • Respect the authority of clan councils and chiefs, who retain political and ceremonial power
  • Recognize the important social role of women within the matrilineal clan system
  • Treat traditional Palauan money ('udoud') — glass beads and whale teeth — as items of deep social and spiritual significance

Good to know

  • Each village has ten clans, whose heads form councils
  • 'Udoud' has no commercial exchange value but is used in marriages, funerals, and major life events
  • The 'omengat' ceremony honors a mother after her first child's birth, with healing seawater baths and gifts of Palauan money
  • The 'bai,' a nail-free traditional meeting house, serves as a gathering place for male elders and clan councils

What cultural activities and arts are important in Palau?

Storytelling, chanting, and carved wooden 'storyboards' depicting legends and daily life are key forms of cultural expression, while fishing remains a spiritual and communal activity central to Palauan identity.

Good to know

  • Storyboard carving is one of Palau's most recognized art forms, preserving oral traditions visually
  • The 'bai' meeting house is adorned with painted carvings representing historical events and cultural narratives
  • Traditional fishing rights are controlled by clans and chiefs

Last updated: 2026-07-12 · Sources: CountryReports

Photos of Palau

Travel and Tourism

Travel Alert Status
Level 1: Exercise Normal Precautions
Currency
US dollar (USD)
Time Difference
UTC+9 (14 hours ahead of Washington, DC, during Standard Time)
Climate
Palau has a tropical climate with annual rainfall of about 150 inches. The climate tends to be drier during El Nino years. Rain falls throughout the year, though January through March are usually the driest months. Palau is outside the normal typhoon track, but from June to November a tropical storm can settle over the country and dump heavy amounts of rain for several days. The temperature averages range from a high of 87 degrees to a low of 77 degrees year round. Humidity is high, ranging from 86% to 91%, and non-air conditioned environments can get moldy. Air quality is excellent and free of pollutants.
Airports
3
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History

Historical Eras

  1. Ancient Settlement

    2000 BCE – 1710

    Palau was first settled approximately 4,000 years ago, most likely by Austronesian-speaking migrants from the Indonesian archipelago. Over millennia, a distinct Palauan culture emerged, characterized by the bai (men's meeting houses), an elaborate system of clans and chieftainships, and the storied stone money-like traditions of inter-island exchange. The islands remained largely self-governing under indigenous leadership until sustained contact with European powers began.

  2. British & Spanish Contact

    1710 – 1899

    British traders and whalers became regular visitors from the early 18th century, with Captain Henry Wilson's shipwreck in 1783 producing one of the first detailed Western accounts of Palauan society. Spain formally asserted sovereignty over the Caroline Islands, including Palau, in 1885 following a dispute with Germany arbitrated by Pope Leo XIII. Spanish colonial influence remained relatively light, focused on missionary activity and nominal administration from the Philippines.

  3. German Colonial Rule

    1899 – 1914

    Following its defeat in the Spanish-American War, Spain sold Palau and the remaining Caroline Islands to Germany in 1899 for 25 million pesetas. German administrators promoted copra and phosphate extraction and introduced systematic land surveys and labor regulations. The period was brief but laid infrastructure groundwork and disrupted traditional land tenure arrangements across the archipelago.

  4. Japanese Mandate

    1914 – 1947

    Japan seized Palau at the outbreak of World War I and received formal administration of Micronesia as a League of Nations mandate in 1920, establishing Koror as the regional capital of the South Seas Mandate. Japanese settlers eventually outnumbered Palauans, and the islands were heavily industrialized and militarized. The devastating Battle of Peleliu in 1944, one of the Pacific War's bloodiest engagements, left the archipelago in ruins before American forces prevailed.

  5. US Trust Territory

    1947 – 1994

    The United Nations designated Palau part of the Trust Territory of the Pacific Islands under United States administration in 1947. Palau declined to join the Federated States of Micronesia in 1979, instead ratifying its own constitution and declaring itself the Republic of Palau in 1981. Negotiations over a Compact of Free Association with the United States were complicated by Palau's nuclear-free constitution, requiring eight separate referenda before the Compact was finally ratified in 1993.

  6. Independent Republic

    1994 – present

    On October 1, 1994, the Compact of Free Association entered into force and Palau became a fully independent nation, joining the United Nations the same year while maintaining close defense and economic ties with the United States. The republic has developed a significant marine-tourism economy, and its waters—including the famed Jellyfish Lake and Blue Corner dive sites—attract international visitors. Palau has also emerged as a prominent advocate for ocean conservation and climate change action on the world stage.

Overview

Palau was initially settled more than 4,000 years ago, probably by migrants from what today is Indonesia. British traders became prominent visitors in the 18th century, followed by expanding Spanish influence in the 19th century. Following its defeat in the Spanish-American War, Spain sold Palau and most of the rest of the Caroline Islands to Germany in 1899. Control passed to Japan in 1914 and then to the United States under UN auspices in 1947 as part of the Trust Territory of the Pacific Islands.

Four of the Trust Territory districts formed a single federated Micronesian state in 1979, but the districts of Palau and the Marshall Islands declined to participate. Palau instead approved a new constitution and became the Republic of Palau in 1981, signing a Compact of Free Association with the United States in 1982. After eight referenda and an amendment to the Palauan constitution, the Compact went into effect on October 1, 1994, marking Palau’s emergence from trusteeship to independence.

Timeline of Key Events

  1. 1885

    Spain asserts its claim to the islands.

    Spain asserts its claim to the islands.

  2. 1899

    Spain sells Palau to Germany.

    Spain sells Palau to Germany, which begins to exploit the islands’ resources using native labor. Phosphate is mined and coconut plantations are developed.

  3. 1914

    After Germany’s defeat in World War I, Japan seizes Palau.

    After Germany’s defeat in World War I, Japan seizes Palau. The main town, Koror, is developed and becomes the administrative centre for Japan’s regional possessions. The Japanese civilian population in Palau peaks at 26,000.

  4. 1994

    Palau becomes independent .

    Palau becomes independent under the Contract of Free Association with the US. Palau receives financial and other aid from Washington, and the US retains responsibility for defence and the right to operate military bases. Palau joins the UN.

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Interesting Facts

  • In 1783 Henry Wilson, an English captain, was shipwrecked on a reef off the coast of Palau. Wilson and his crew rebuilt their ship with the help of the islanders.

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Geography and Environment

The Republic of Palau consists of over 300 islands (9 of which are inhabited) divided into 16 states. Formerly known as the Western Caroline Islands, the Palauan chain stretches about 400 miles from a north latitude of 7 degrees and 20 minutes to a southwestern latitude of 3 degrees and 30 minutes. Palau is 550 miles directly east of the Philippine island of Mindanao. Guam is 815 miles to the northeast and Hawaii is 4,600 miles east. The total land area is 188 square miles. Approximately 78% of this is the island of Babeldaob, the second largest island in the Micronesian Pacific after Guam. Geologically, Palau varies from Kayangel atoll in the north, to islands of volcanic origin in the center and the famous limestone "Rock Islands" further south. Over 350 miles from Koror to the south are the seldom visited, sparsely populated "Southwest" islands. Koror is spread over three islands connected by causeways and bridges. A recently constructed 412 meter suspension bridge connects Koror to Babeldaob where the international airport is located. Much of the coastline around Koror is mangrove forest, and there are no natural sand beaches in Koror. Babeldaob, Koror, and the Rock Islands are protected by an outer reef several miles from shore. South of the Rock Islands are the populated islands of Peleliu and Angaur, sites of intensive fighting during World War II.
Terrain
varying geologically from the high, mountainous main island of Babelthuap to low, coral islands usually fringed by large barrier reefs
Climate
Palau has a tropical climate with annual rainfall of about 150 inches. The climate tends to be drier during El Nino years. Rain falls throughout the year, though January through March are usually the driest months. Palau is outside the normal typhoon track, but from June to November a tropical storm can settle over the country and dump heavy amounts of rain for several days. The temperature averages range from a high of 87 degrees to a low of 77 degrees year round. Humidity is high, ranging from 86% to 91%, and non-air conditioned environments can get moldy. Air quality is excellent and free of pollutants.
Natural Hazards
typhoons (June to December)
Current Environmental Issues
inadequate facilities for disposal of solid waste; threats to the marine ecosystem from sand and coral dredging, illegal fishing practices, and overfishing
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People & Demographics

Religion

Languages Spoken

English and Palauan official in all states except Sonsoral (Sonsoralese and English are official), Tobi (Tobi and English are official), and Angaur (Angaur, Japanese, and English are official)

  • English
  • Japanese
  • Palauan

Population

Population
20,879
Population in Major Urban Areas
MELEKEOK (capital) 1,000
Nationality Noun
Palauan(s)
Ethnic Groups
Palauan (Micronesian with Malayan and Melanesian admixtures) 70%, Asian (mainly Filipinos, followed by Chinese, Taiwanese, and Vietnamese) 28%, white 2%

Education

Literacy Definition
age 15 and over can read and write
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Government & Politics

Country Identity

Country Name
Palau
Full Country Name
Republic of Palau
Local - Long
Beluu er a Belau
Local - Short
Belau
Former Name
Palau District (Trust Territory of the Pacific Islands)

Government Structure

Government Type
constitutional government in free association with the US; the Compact of Free Association entered into force 1 October 1994
Legal System
based on Trust Territory laws, acts of the legislature, municipal, common, and customary laws
Executive Branch
chief of state: President Surangel WHIPPS Jr. (since 21 January 2021) and Vice President Uduch Sengebau SENIOR (since 21 January 2021); note - the president is both the chief of state and head of government head of government: President Surangel WHIPPS Jr. (since 21 January 2021) and Vice President Uduch Sengebau SENIOR (since 21 January 2021); note - the president is both the chief of state and head of government cabinet: Cabinet appointed by the president with the advice and consent of the Senate elections: president and vice president elected on separate tickets by popular vote for four-year terms (eligible for a second term); election last held on 3 November 2020 (next to be held in November 2024) election results: Surangel WHIPPS Jr. elected president; percent of vote - Surangel WHIPPS Jr. 56.7%, Raynold OILOUCH 43.3%; Uduch Sengebau SENIOR elected vice president
Legislative Branch
bicameral Parliament or Olbiil Era Kelulau (OEK) consists of the Senate (9 seats; members elected by popular vote on a population basis to serve four-year terms) and the House of Delegates (16 seats; members elected by popular vote to serve four-year terms) elections: Senate - last held 2 November 2004 (next to be held November 2008); House of Delegates - last held 2 November 2004 (next to be held November 2008) election results: Senate - percent of vote - NA%; seats - independents 9 (four new members elected); House of Delegates - percent of vote - NA%; seats - independents 16 (one new member elected)
Judicial Branch
Supreme Court; National Court; Court of Common Pleas
Suffrage
18 years of age; universal
Constitution
1-Jan-81
Independence
1 October 1994 (from the US-administered UN Trusteeship)
National Holiday
Constitution Day, 9 July (1979)

Capital City

Capital Name
Ngerulmud
Capital - geographic coordinate
7 30 N, 134 37 E
Capital Time Difference
UTC+9 (14 hours ahead of Washington, DC, during Standard Time)

the Palauan meaning is "place of fermented 'mud'" ('mud' being the native name for the keyhole angelfish); the site of the new capitol (established in 2006) had been a large hill overlooking the ocean, Ngerulmud, on which women would communally gather to offer fermented angelfish to the gods

note: Ngerulmud, on Babeldaob Island, is the smallest national capital on earth by population, with only a few hundred people; the name is pronounced en-jer-al-mud; Koror, on Koror Island, with over 11,000 residents is by far the largest settlement in Palau; it served as the country's capital from independence in 1994 to 2006

Military

Branches: no regular military forces; Palau National Police

Embassy / Diplomatic Mission

U.S. Embassy in Koror, Palau

In Airai State, in an area known as Omsangel (no street address)

P.O. Box 6028, Koror, Palau 96940

Telephone: (680) 587-2920/2990

Facsimile: (680) 587-2911

The U.S. Embassy in Koror accepts passport applications but does not issue passports or make decisions about citizenship claims; the Honolulu Passport Agency handles these requests. The Embassy does not issue immigrant visas, that function is performed by the U.S. Embassy in Manila.

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Economy

Palau's economy is driven primarily by tourism, subsistence agriculture, and fishing, with the government serving as the largest employer of the formal workforce. The country relies heavily on financial assistance from the United States under the Compact of Free Association, which was renewed in 2023 and provides approximately $890 million in economic assistance through 2044. Tourism, the leading private-sector industry, suffered a severe contraction during the COVID-19 pandemic but has been gradually recovering, with visitor arrivals climbing back from pandemic-era lows toward pre-2020 levels of roughly 90,000 annually. Palau enjoys one of the highest per capita incomes in the Pacific Islands region, with GDP per capita estimated at around $14,000-$15,000. The economy remains vulnerable to external shocks, fluctuations in tourist arrivals, and climate change impacts. Long-term prospects for the tourism sector depend on expanded air connectivity, demand from East Asian markets, and continued investment in sustainable infrastructure. Palau has also positioned itself as a global leader in marine conservation, with its Palau National Marine Sanctuary protecting 80 percent of its exclusive economic zone, supporting both ecotourism and fisheries management.

Snapshot

Currency Name and Code
US Dollar (USD)
GDP Real Growth Rate
1%

Banknotes

Palau Money - Front
Palau Money - Front
Palau Money - Back
Palau Money - Back

Budget & Public Finance

Fiscal Year
1 October - 30 September
Annual Budget
$80,800,000 (USD)
Economic Aid
$155,800,000 (USD)

Labor, Industry & Trade

Labor Force by Occupation
agriculture 20%
Industries
tourism, craft items (from shell, wood, pearls), construction, garment making
Agriculture Products
coconuts, copra, cassava (tapioca), sweet potatoes
Export Commodities
shellfish, tuna, copra, garments
Export Partners
US, Japan, Singapore
Import Commodities
machinery and equipment, fuels, metals; foodstuffs
Import Partners
US, Guam, Japan, Singapore, Korea

Energy

Oil Production
0 bbl/day
Oil Consumption
0 bbl/day
Oil Reserves
0 bbl/day
Natural Gas Production
0 cu m
Natural Gas Consumption
0 cu m
Natural Gas Imports
0 cu m
Natural Gas Exports
0 cu m
Natural Gas Reserves
0 cu m

Communications

Telephone System
domestic: fixed-line and mobile-cellular services available with a combined subscribership of roughly 100 per 100 persons international: country code - 680; satellite earth station - 1 Intelsat (Pacific Ocean)
Internet Country Code
.pw

News & Weather

Current Weather

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Latest News

News via Google News

Climate Overview

Palau has a tropical climate with annual rainfall of about 150 inches. The climate tends to be drier during El Nino years. Rain falls throughout the year, though January through March are usually the driest months. Palau is outside the normal typhoon track, but from June to November a tropical storm can settle over the country and dump heavy amounts of rain for several days. The temperature averages range from a high of 87 degrees to a low of 77 degrees year round. Humidity is high, ranging from 86% to 91%, and non-air conditioned environments can get moldy. Air quality is excellent and free of pollutants.

Frequently Asked Questions

What is the population of Palau?
The population of Palau is approximately 20,879.
What social customs and traditions should I be aware of in Palau?
Palauan life is governed by a matrilineal clan system called 'kebliil,' where titles, inheritance, and land rights pass through the mother's line, giving women a foundational social role and clan councils real authority. Do: Respect the authority of clan councils and chiefs, who retain political and ceremonial power Recognize the important social role of women within the matrilineal clan system Treat traditional Palauan money ('udoud') — glass beads and whale teeth — as items of deep social and spiritual significance Each village has ten clans, whose heads form councils 'Udoud' has no commercial exchange value but is used in marriages, funerals, and major life events The 'omengat' ceremony honors a mother after her first child's birth, with healing seawater baths and gifts of Palauan money The 'bai,' a nail-free traditional meeting house, serves as a gathering place for male elders and clan councils
What cultural activities and arts are important in Palau?
Storytelling, chanting, and carved wooden 'storyboards' depicting legends and daily life are key forms of cultural expression, while fishing remains a spiritual and communal activity central to Palauan identity. Storyboard carving is one of Palau's most recognized art forms, preserving oral traditions visually The 'bai' meeting house is adorned with painted carvings representing historical events and cultural narratives Traditional fishing rights are controlled by clans and chiefs
What is the capital of Palau?
Ngerulmud is the capital of Palau, located on the island of Babeldaob, the largest island in the archipelago. It became the official capital in 2006, replacing the former administrative center of Koror. Ngerulmud is notable for being one of the least populous capital cities in the world, home to only a few hundred permanent residents. Its modern capitol building stands as a symbol of Palauan sovereignty following the nation's formal independence in 1994.
Where is Palau located?
Palau is an island nation situated in the western Pacific Ocean, forming the westernmost cluster of the Caroline Islands in the region of Micronesia, Oceania. It lies roughly 800 kilometers east of the Philippines and about 3,200 kilometers south of Tokyo. After three decades as part of the UN Trust Territory of the Pacific Islands under US administration, Palau chose independence in 1978 rather than join the Federated States of Micronesia, formally becoming a sovereign state in 1994 under a Compact of Free Association with the United States.
What are the ocean and sea borders of Palau?
As an archipelago, Palau is bordered entirely by water. The Philippine Sea lies to its north and east, while the western side of the island chain faces waters leading toward the Philippines. The archipelago comprises more than 500 islands, though only a small number are inhabited. Palau's maritime boundaries are strategically significant in the western Pacific, and the nation maintains a large Exclusive Economic Zone it actively manages for conservation and fishing rights.
What religion is practiced in Palau?
Roman Catholicism is the predominant religion in Palau, practiced by approximately 41.6 percent of the population, a legacy of Spanish colonial influence in the Caroline Islands during the late nineteenth century. Protestant denominations account for roughly 23.3 percent of the population, while other religious traditions, including Modekngei, an indigenous Palauan religion that blends traditional beliefs with elements of Christianity, make up the remaining 26.4 percent. Religious practice is generally integrated into community and family life across the islands.
What currency is used in Palau?
Palau uses the USD, or United States Dollar, as its official currency. Palau does not issue its own currency, a direct consequence of its Compact of Free Association with the United States, which has governed economic and defense relations since coming into force in 1994. This arrangement simplifies trade and travel with the US and other dollar-denominated economies, and Palau's economy relies substantially on tourism revenue and US financial assistance.
What languages are spoken in Palau?
English and Palauan are the two official languages across most of Palau's states. However, the country's linguistic landscape is notably varied at the state level: Sonsoralese and English are official in Sonsoral State, Tobi and English are official in Tobi State, and Angaur State officially recognizes Angaur, Japanese, and English — a rare distinction reflecting Japanese colonial administration of the islands during the early twentieth century. Japanese is seldom spoken today but retains official status in Angaur as a historical acknowledgment.
What is the geography of Palau like?
Palau is a compact archipelago composed of more than 500 islands ranging from the high, volcanic terrain of Babeldaob — the largest island — to low-lying coral atolls in the southwest. The islands are largely surrounded by one of the most biodiverse coral reef systems in the world, including the renowned Rock Islands, a UNESCO World Heritage Site. The southwestern islands of Sonsoral, Tobi, and Angaur lie far from the main cluster and are among the most remote and sparsely inhabited in the entire Pacific region.
What is Palau known for?
Palau is internationally recognized for its extraordinary marine biodiversity, most notably Jellyfish Lake on Eil Malk island, where millions of non-stinging golden jellyfish migrate daily, and the Rock Islands Southern Lagoon, a UNESCO World Heritage Site prized by divers for its coral walls and WWII shipwrecks. Palau was also a pioneer in ocean conservation, establishing the world's first shark sanctuary in 2009. A lesser-known historical footnote is that in 1783, English captain Henry Wilson was shipwrecked on a Palauan reef and his crew rebuilt their vessel with local assistance, one of the earliest documented contacts between Palauans and Europeans.

Last reviewed 2026

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