Pallai (Tamil: பளை, Sinhala: පල්ලෙයි), also spelt Palai, is a small town in the Kilinochchi District, Northern Province, Sri Lanka. The town is located under the division of the Pachilaipally Divisional Secretary and is administered by the Pachilaipally Pradeshiya Sabha.

It is located near the coast on the northern peninsula, approximately 40 kilometres (25 mi) south-east of Jaffna.

In 1861 the Church Mission Society sent Rev. John Backus to Pallai to establish a Christian community in the town. This led to the construction and dedication of St. Andrew's Church on 30 November 1895.

In 1921 the government declared a 4.25 square kilometres (2 sq mi) area adjacent to the town as a forest reserve.

Pallai is located on the (A9) Kandy-Jaffna Highway.

It is served by a railway station on the national network which was out of use due to war damage. In 2009, agreements were made to restore the line back into service. The railway resumed operation on 4 March 2014.

• Railway stations in Sri Lanka
• Pallai railway station