Palacios is a city located in Matagorda County, Texas, United States. It is situated on the shores of Tres Palacios Bay and is approximately 85 miles southwest of Houston. The city has a population of around 4,700 people and covers an area of 5.29 square miles. Palacios is known for its fishing and shrimping industries, and it attracts visitors with its recreational opportunities, including boating, bird-watching, and wildlife observation. The city also hosts various events and festivals throughout the year, such as the Annual Rice Festival and the Great Texas Mosquito Festival.