Early history Palau was originally settled between the 3rd and 2nd millennia BCE by
Austronesian peoples, most likely from what is now the Philippines or Indonesia.
Sonsorol was sighted by the
Spanish as early as 1521, when the
Spanish mission of the
Trinidad, the flagship of
Ferdinand Magellan's voyage of circumnavigation, sighted two small islands around the
5th parallel north, naming them "San Juan". In December 1696, a group of sailors from the
Caroline Islands were stranded on
Samar, near
Guiuan, when they met European missionary
Paul Klein. Using pebbles, the sailors attempted to show Klein the approximate location and size of the islands. He used this information to produce the first European map of the Palau area. Klein sent the map to
Jesuit Superior General, along with a letter detailing the names of the islands, the culture of the people, and his experiences with them.
Spanish era in the
Marianas and
Carolinas, c. 1590
Boxer Codex|alt= {{multiple images The Klein map and letter caused a vast interest in the new islands. Another letter written by Fr. Andrés Serrano was sent to Europe in 1705, essentially copying the information given by Klein. The letters resulted in three unsuccessful Jesuit attempts to travel to Palau from
Spanish Philippines in 1700, 1708, and 1709. The islands were first visited by the Jesuit expedition led by Francisco Padilla on 30 November 1710. The expedition ended with the stranding of the two priests, Jacques Du Beron and Joseph Cortyl, on the coast of Sonsorol, because the mother ship
Santísima Trinidad was driven to
Mindanao by a storm. Another ship was sent from
Guam in 1711 to save them only to capsize, causing the death of three more Jesuit priests. The failure of these missions gave Palau the original Spanish name
Islas Encantadas (Enchanted Islands).
Transitions era British traders became regular visitors to Palau in the 18th century (the British East India Company
packet ship Antelope shipwrecked off
Ulong Island in 1783, leading to
Prince Lee Boo's visit to London), followed by expanding Spanish influence in the 19th century. Palau, under the name
Palaos, was included in the
Malolos Congress in 1898, the first revolutionary congress in the Philippines, which wanted full independence from colonialists. Palau was part of the
Spanish East Indies headquartered in the Spanish Philippines. Palau had one appointed member to the Congress, becoming the only group of islands in the entire
Caroline Islands granted high representation in a non-colonial Philippine Congress. Congress also supported the right of Palau to self-determination if ever it wished to pursue such a path. Later in 1899 as part of the Caroline Islands, Palau was sold by the Spanish Empire to the
German Empire as part of
German New Guinea in the
German–Spanish Treaty (1899). During
World War I, the
Japanese Empire annexed the islands after seizing them from
Germany in 1914. Following World War I, the
League of Nations formally placed the islands under Japanese administration as part of the
South Seas Mandate. In World War II, Palau was used by Japan to support its
1941 invasion of the Philippines, which succeeded in 1942. The invasion overthrew the American-installed
Commonwealth government in the Philippines and installed the Japanese-backed
Second Philippine Republic in 1943.
United States era During World War II, the United States captured Palau from Japan in 1944 after the costly
Battle of Peleliu, when more than 2,000 Americans and 10,000 Japanese were killed, and later the
Battle of Angaur. In 1945–1946, the United States re-established control of the Philippines and managed Palau through the Philippine capital of Manila. By the latter half of 1946, however, the Philippines was granted full independence with the formation of the
Third Republic of the Philippines, shifting the U.S. Far West Pacific capital to
Guam. Palau was passed formally to the United States under United Nations auspices in 1947 as part of the
Trust Territory of the Pacific Islands established pursuant to
Security Council Resolution 21.
Independence Four of the Trust Territory districts joined and formed the Federated States of Micronesia in 1979, but the districts of Palau and the
Marshall Islands voted against the proposed constitution. Palau, the westernmost cluster of the Carolines, instead opted for independent status in 1978, which was widely supported by the Philippines,
Taiwan, and Japan. It approved a new constitution and became the Republic of Palau on 1 January 1981. It signed a
Compact of Free Association with the United States in 1982. In the same year, Palau became one of the founding members of the
Nauru Agreement. The compact entered into force on 1 October 1994, concluding Palau's transition from trusteeship to independence as the last portion of the
Trust Territory of the Pacific Islands to secure its independence pursuant to
Security Council Resolution 956. Palau also became a member of the
Pacific Islands Forum but withdrew in February 2021 after a dispute regarding
Henry Puna's election as the forum's secretary-general. Legislation making Palau an "offshore" financial center was passed by the
U.S. Senate in 1998. In 2005, Palau led the
Micronesia Challenge, which would conserve 30% of near-shore coastal waters and 20% of forest land of participating countries by 2020. In 2009, Palau created the world's first
shark sanctuary, banning commercial shark fishing within its waters. In 2012, the
Rock Islands of Palau was declared as a
UNESCO World Heritage Site. In 2015, Palau became a member of the
Climate Vulnerable Forum under the chairmanship of the Philippines, and at the same time, the country officially protected 80% of its water resources, becoming the first country to do so. The protection of its water resources made significant increases in the country's economy in less than two years. In 2017, it became the first state in the world to establish an eco-promise, known as the
Palau Pledge, which is stamped on local and foreign passports. In 2018, Palau and the Philippines began re-connecting their economic and diplomatic relations. The Philippines supported Palau to become an observer state in
ASEAN. == Politics and government ==