Palau has a population of around 18,000 people, making it one of the least populated countries in the world. The majority live in or near Koror. Despite the small size, Palau punches above its weight in terms of political and environmental influence — it was one of the first nations to establish a shark sanctuary and has been vocal in global climate negotiations.
Palauans are of mixed Micronesian, Melanesian, and Austronesian descent, with visible Japanese and Filipino influence from the colonial and modern eras. A significant share of the workforce consists of Filipino and Bangladeshi migrants working in hospitality, construction, and fishing.
The indigenous culture is matrilineal — land and traditional titles pass through the mother's line, which gives women considerable social standing. The clan system remains important in traditional ceremonies and village politics, even as everyday life becomes increasingly modernised.
Modekngei is a religion indigenous to Palau, practised alongside Christianity by a significant minority. It emerged in the early 20th century as a form of cultural resistance to colonialism and combines traditional Palauan spirituality with elements absorbed from outside influences. It's a reminder that Palau's culture absorbed centuries of Spanish, German, Japanese, and American influence while retaining something distinctly its own.
Christianity — predominantly Catholic and various Protestant denominations — is the majority religion. The indigenous Palauan language is spoken widely alongside English; Japanese is still spoken as a first language by some older Palauans whose families lived through the Japanese colonial period.
Palauans are generally reserved but warm with visitors who show genuine interest in the place. The tourism industry is well-established but not overwhelming — this is not a mass-market destination, and it shows in how interactions tend to feel.