Palacios is a city in Matagorda County, Texas, United States. The population was 4,395 at the 2020 census. The native inhabitants of t…Palacios is a city in Matagorda County, Texas, United States. The population was 4,395 at the 2020 census. The native inhabitants of the region were the Karankawa people, whose initial contact with Europeans came in the 16th century when Spanish expeditions first traversed their territory. In 1685, the area was explored by René-Robert Cavelier, Sieur de La Salle, the leader of an ill-fated French settlement attempt whose flagship La Belle was wrecked in the bay the following year. In the 1820s, English-speaking settlers arrived and came into frequent conflict with the Karankawa, who were eventually driven out of the area.
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