Palacios started his career with Colombian side
Itagüí Leones in 2019, where he made twenty-four league appearances and scored zero goals. During the summer of 2021 he was sent on loan to Colombian side
América de Cali, where he made eleven league appearances and scored zero goals. One year later, he signed for Colombian side
Deportivo Pereira, where he made eighteen league appearances and scored zero goals and helped the club win the
league title. Ahead of the
2023 season, he signed for Colombian side
Independiente Medellín, where he made sixty league appearances and scored four goals. Subsequently, he was sent on loan to Colombian side
La Equidad in 2024, where he made fourteen league appearances and scored one goal. Following his stint there, he signed for Russian side
FC Orenburg in 2026. ==Career statistics==