Notice: September 2017 - Palacio is closing for a remodel and they will be returning as Kailua Bistro, Pacific Rim cuisine.
Palacio is a new Mexican / South American restaurant from the same owners of Forbes Mill. Palacio is located in the renovated Coggeshell Victorian (aka old Funeral Parlor) by De Mattei Construction so the interior and exterior look great. This not your "run of the mill" re-fried beans with globs of cheese kinda place. Look for upscale, but authentic drinks and entries such as tortilla soup, mole, plantain chips, churros, margaritas and more. The restaurant also has a bar as well as some fun outdoor seating. Pre-opening was June 22nd, and open to the public on June 24th 2011.