Palestine is a city in and the seat of Anderson County in the U.S. state of Texas. It was named after Palestine, Illinois, by preacher Daniel Parker…Palestine is a city in and the seat of Anderson County in the U.S. state of Texas. It was named after Palestine, Illinois, by preacher Daniel Parker, who had migrated from that town. The city had a 2020 U.S. census population of 18,544, making it the sixth-largest incorporated municipality in Northeast Texas by population. Palestine is a relatively small city located in the Piney Woods, equidistant from the major cities of Dallas, Houston, and Shreveport, Louisiana.