Palamecia is a bewitched medieval-esque country lorded over by the despotic Emperor Mateus who tainted the land's namesake royal Empire and its citizens with evil, turning the nation itself into a merciless war-mongering dictatorship on his selfish path of total domination, and it is a location in Final Fantasy II. It is fertile green land surrounded by its mountainous and arid desert. The imperial fortress known as Castle Palamecia, serving as the Palamecian Empire's focal point, is found on the impregnable mountain ranges nearby within the Palamecian heartland, making the building naturally difficult to get in or get out. Just south of the mountains where Castle Palamecia is lies the kingdom's very own Coliseum, surrounded by forests and deserts within the Palamecian territory, where it is utilized for competitions of soldiers against monsters, as well as for it being an expedient prison indeed. Somewhere a bit far away from Palamecian borders is a refueling station for the Empire's aerial war-machine dubbed Dreadnought.
A cold madman whose name is Mateus, after practicing and mastering dark magic, rose to power and crowned himself "The Emperor", began building a mighty army of summoned demons from the depths of Hell. He soon subjugates the kingdoms of Deist and Kashuan and this army of darkness eventually reaches the kingdom of Fynn. Despite the Fynn citizenry's resistance, they are overrun due to the coawrly aristocrat Borghen's defection to the Empire of Palamecia. The city's terrible conflict comes with heavy casualties blamed squarely on the Palamecian Empire themselves.
At the height of its power, the Palamecian Empire now controls the entire southern portion of the continent, with their reign extending as far as the city of Fynn. For the most part, their rule went unopposed, although the Wild Rose Rebellion is seen as a formidable threat. During Emperor Mateus' recent and ongoing rampage, the opposing settlements Bafsk, Kashuan, and Fynn are being occupied by imperial soldiers with the former being used as the place to construct the airship Dreadnought. The Empire ultimately crushed the cities Gatrea, Altair, Poft, and Paloom after they created a machine-like castle within an artificial tornado called the Cyclone, while the Wyvern-riding group of knights called Dragoons at Richard Highwand's hometown Deist were wiped out in a genocidal act via poisoning the water source on the island, another crime committed by the doomed Empire of Palamecia in the name of their false King, Mateus.
Meanwhile, unaware Emperor Mateus would meet his ultimate end in 4 young souls—Firion, Maria, Guy and Leon—who are left for dead after being attacked by his royal Black Knights. While Firion, Maria and Guy are saved by the Wild Rose Rebellion and join the benign organization to fight back, Leon is captured and becomes the Emperor's right-hand Dark Knight.
- The name "Palamecia" is a possible pun on the word "Paramecium" (plural paramecia), a genus of single-celled oval-shaped protists that are naturally found in aquatic habitats, and widely utilized as a model organism and for education. Also, the root ancient Greek word paramḗkēs (παραμήκης) for this name means "oval".
- A floor amongst many within the Arcane Labyrinth in Final Fantasy II is called "Palamecia".
- A planet that serves as the main setting of the 2015 free-to-play RPG videogame Mobius Final Fantasy is also named "Palamecia".
- Although this location shares its English name with Palamecia from Final Fantasy II, their Japanese names are different. They both derive from the word "paramecia", though the Final Fantasy II term derives from the Latin pronunciation, while the Mobius term derives from the English pronunciation.
- A server structure for the game Final Fantasy XIV was called "Palamecia".
- It is sometimes erroneously called "Palakia" in the unreleased English version on the Nintendo Entertainment System.
- One of the Sanctum Skyfleet's airships in Final Fantasy XIII is dubbed "Palamecia".
- In the Final Fantasy II novelization, "Final Fantasy II Muma no Meikyū", it is stated that Palamecia is cursed with demonic influences which poisoned the hearts and minds of its rulers. The unseen demon, named Satan, desiring to take over the world by human proxy, turns men into malicious masterminds by using everything at its disposal to pollute their thoughts with its evil. The demon originates from the beginning of the world when it became trapped within the indestructible "Stone of Iludia" and swore revenge. After ascending to the throne, Mateus exiles his mother, Airu, to the deserts of Palamecia, but she still spends her life trying to find a way to save him. During the novel, Airu and Minwu team up to find a crystal, which can purify the land. It ends up being too late to save Mateus, but it helps to bring peace to the world.
- Although not to the extent of Emperor Gestahl's Gestahlian Empire in Final Fantasy VI, the Palamecian Empire shares some similarities to the Galactic Empire from the Star Wars franchise.
- If the player encounters Palamecian Soldiers, the latter will sometimes refer to the party as "Rebel Scum", a classic insult the Imperial Officer Renz uses against Han Solo in Star Wars: Return of the Jedi.
- In the remakes, a cutscene where the party observes the Dreadnought pursuing and ultimately capturing Cid's Airship with Queen Hilda onboard resembles the opening scene for Star Wars: A New Hope.
- Elements of Leon's characterization, such as his being a former member of the heroes before being brainwashed into the Emperor's service, his high rank and wearing black armor, having magical powers under the service of the Empire, being related to one of the heroes, and ultimately aiding his former friends in taking out the Emperor late in the game, are similar to Darth Vader from the original Star Wars trilogy.
- One story found in the Mysidian library within the town of Mysidia implies that Palamecia itself was a normal kingdom without such desire for war nor avarice before becoming an empire. The story goes that one past unidentified Palamecian king had challenged the world to see who could reach his daughter on a high floor of his castle, there win her hand in marriage. Many men tried but none succeeded, that is until one man used a hot air balloon to reach the Palamecian princess. The king, who was not pleased with this act, tried to seize him, but the man fled into the skies with the king's daughter. This story about the unnamed Palamecian princess was a variance of the traditional Rapunzel fairytale.