Palau gained its independence October 1, 1994, with the entry into force of the Compact of Free Association with the United States. Palau was the last Trust Territory of the Pacific Islands territories to gain its independence. Under the Compact, the U.S. remains responsible for Palau's defense for 50 years. Palau is a sovereign nation and conducts its own foreign relations. From its independence until July 2019, Palau had established diplomatic relations with 101 countries. Palau was admitted to the United Nations on December 15, 1994, and has since joined several other international organizations. In 2004, Stuart Beck was appointed to serve as Palau's first permanent representative to the United Nations. Along with the other former Trust Territories, Palau is one of a handful of countries that regularly votes with Israel in the United Nations General Assembly.

Diplomatic relations

List of countries which Palau maintains diplomatic relations with:

Bilateral relations

Military relations

The Palau government has agreed to host a large United States Air Force high-frequency radar station in Palau, a Tactical Multi-Mission Over the Horizon Radar (TACMOR) system costing well over $100 million, which is expected to be operational in 2026. Palau has participated in various U.S. military exercises over the years including Exercise Valiant Shield. The first-launch in Palau of a Patriot surface-to-air missile by the U.S. took place in 2022 Valiant Shiel, which also had the experimental deployment of A-10 Warthogs at Roman Tmetuchl International Airport.