Located in the western Pacific Ocean, Palau has an area of 466 square kilometres.
It consists of some 340 coral and volcanic islands.
Palau became an independent state in 1994, after gaining its sovereignty from the US. The population of Palau is 21,032. The most populous island is Koror.
The original settlers of Palau are believed to have arrived from Indonesia as early as 2500 BC. The capital Ngerulmud is located on the nearby island of Babeldaob, in Melekeok State.
Tourism is low key, although growing in economic importance. Many visitors come from Taiwan, with which Palau has diplomatic ties. Taiwanese aid boosts the economy. The government is Palau’s largest employer.
There is concern that the low-lying islands could be badly affected by rising sea levels possibly due to climate change.