The Princely State of Palali was one of the renowned princely states of India that was managed and supervised by a native prince under the guidance of the British authorities. The princely state was under the indirect control of the British Empire in India. The state was scattered over a total area of 4 sq miles and comprised of a total population of 624 in the year 1931. The taluka of Palali was situated in the District Thana of Wadhwan. The territory consisted of 2 villages that were located in a single block of land, entirely enclaved within the v of the princely state of Limbdi. The Princely State of Palali was bounded by the territory of Talsana in the east and by the princely state of Bhathan in the west.

The District Thana of Wadhwan was generally bordered by the princely state of Lakhtar in the north; by the princely state of Limbdi in the south and east; and by the princely state of Wadhwan in the west. Almost all of the 17 estates were the branches of Wadhwan. The region was merged with Bhoika Thana after the year 1935 in order to form the new Wadhwan Bhoika Thana for convenience purposes. It incorporated around 35 estates, covering a total area of 347 sq miles and comprised of a total population of 38,719 in the year 1931.

History of Princely State of Palali
The Princely State of Palali was under the administrative control of the Baroda Agency, which was incorporated as a part of the Western India States Agency. Later the territory was merged with the state of Gujarat. The state was also a part of the Eastern Kathiawar Agency and the District Thana of Wadhwan as well.

The princely state of Palali was claimed by more than one native prince, who were formally addressed as shareholders. There are two such shareholders in the state. The Jhala Rajputs were the shareholders the territory. Palali state was a non- jurisdictionary native state. The estateholders of the District Thana of Wadhwan were well learned and educated individuals who were politically aware. The native state of Palali paid annual tribute to the princely state of Junagadh. According to the Attachment Scheme of 1943, the princely state of Palali was attached to the princely state of Limbdi. The territory was amongst of the 29 units that were attached in the initial phase of the scheme which followed the lead of Ghodasar and Bhadwa in declining to recognize the power and authority of the attaching of princely states.

Accession of Princely State of Palali
On 15th August 1947 the nation attained freedom from the dominion of the British Government in India and it resulted in the partition of India. The former native states of India were given the option of merging with the newly formed Union of India or the Dominion of Pakistan. The princely state of Palali was acceded to the Republic of India.