Home to one of the Gulf Coast's biggest shrimping fleet, the Port of Palacios offers a variety of options for visitors to stay and enjoy its fishing, outdoor recreation, and friendly environment. Visitors can chose from three bed and breakfasts, five RV parks, a motel, an historic hotel, many vacation homes, and three marinas. Full of shopping and dining opportunities, Main Street runs near the Port of Palacios and the seawall where visitors love to walk. There are also several historic buildings in the downtown area.

The Port of Palacios has a humid subtropical climate with hot humid summers and mild winters. Temperatures range from an average high of 32°C (90°F) in July and August to an average low of about 7°C (44°F) in January. Rainfall hovers around 80 centimeters (three inches), peaking in September at 167 centimeters (6.6 inches) and falling to 62 centimeters (2.5 inches) in February. Humidity levels are fairly constant throughout the year, going above 90% from May to September. There is negligible snowfall in the Port of Palacios.

The Texas State Marine Education Center in the Port of Palacios strives to educate students and citizens. The Center wetlands include a salt-water marsh, a two-kilometer (1.25 mile) nature trail, a 213.4-meter (700-foot) pier, and 731 meters (2400 feet) of beachfront on the bay. The Port of Palacios' Texas State Marine Education Center has hosted more than 150 thousand visitors in the last 20 years. This Port of Palacios attraction is open Monday through Friday from 8am until 4pm and by special arrangement.

The Port of Palacios is a paradise for fishermen. The three lighted fishing piers are open 24 hours a day. The Pavilion pier is wheelchair accessible. Fish species in the rich Matagorda Bay include striped bass, catfish, Atlantic croaker, black and red drum, flounder, herring, and many more.

With great diversity of bird life, the Port of Palacios is also very popular with bird lovers. The Port of Palacios reports more bird species than any other United States location that participates in the Audubon Society's annual Christmas Bird Count. There are several great stops on the Great Texas Coastal Birding Trail where visitors can view birds.

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