Palacio or Palacios is a Basque surname. Notable people with the surname include:
- Alberto Palacio, engineer
- Alfredo Palacio, former president of Ecuador
- Andy Palacio, Belizean musician
- Ernesto Palacio, opera singer
- Héctor Palacio, Colombian road racing cyclist
- Milt Palacio, basketball player
- Rodrigo Palacio, footballer