The village is located several kilometres northwest of the town of Dhërmi, accessed via the main road leading out of the town. The Llogora Pass and Çika Mountain are nearby. The Thunderbolt Mountains, the western chain of the Ceraunian Mountains, enclose the area on its northern and northeastern side. The area opens up on its southwestern side with the mountain of Çika and descends towards the Ionian coast and the Greek Islands of Othonas and Corfu in the distance.
The village contains narrow stone roads and quaint white houses and is built around a 400-year-old platanus (plane tree), which is central to village life and the pride of the village. Geologically the terrain belongs to the western part of the Ionian Tectonic plate.[9] This section of the coastline is referred to by geologists as the Palasë-Butrint coastline. The Palasë beach is 1.5 kilometres in length.[10]
North of Palasë, is located a small bay, named Grammata ('letters' in Greek), accessible only by sea, with the surrounding cliffs containing various epigraphs, texts and symbols, perhaps carved out by sailors.[11]