Palacios de la Sierra is a small town and municipality in the Spanish province of Burgos. The local economy is primarily based on agriculture and logging.

Historical and architectural points of interest include the 16th-century church of Santa Eulalia, the Hermitage of Nuestra Señora del Arroyal (17th century), the necropolis of El Castillo (6th and 7th centuries), the necropolis of Nava (14th century), the necropolis of Bañuelos (14th century?), as well as several medieval bridges.