At the international level, Palacios has represented Argentina in several major tournaments, including the Copa America and the World Cup. His performances on the biggest stage have earned him widespread recognition, with many regarding him as one of the top players in the world.

As his reputation grew, so did his profile. Palacios began to attract attention from top clubs in Argentina and beyond. He earned his first international cap for Argentina in 2020, marking the beginning of a successful and storied international career.

Another highlight of his career was his man-of-the-match performance in the 2020 Copa America, where he led Argentina to a thrilling victory over Brazil.