Palézieux was first mentioned in 1134 as de Palaisol.
Under the rule of Savoy, the family de Palézieux - mentioned in texts from 1154 - had their castle near the village, of which remains can be seen today (mainly a wall). The castle controlled a bridge on the River Broye, which was a source of profit through the various tolls and taxes.
The bridge over the Broye was washed away in 1700, following a flood. It was rebuilt in 1750, following several petitions. Modernized, it is still in place.
The creation of the separate settlement at Palézieux-Gare came about with the commissioning of the railway line between Lausanne and Bern in 1862, which was built away from the original village (which became known as Palézieux-Village). In 1876 the line from Payerne was added, which runs adjacent to Palézieux-Village, and in 1903 the metre gauge line leading to the Gruyère was constructed, with its terminus at Palézieux-Gare.