Palayam is a town panchayat in Dindigul district in the Indian state of Tamil Nadu. It falls under Vedasandur Assembly constituency and Karur Lok Sabha constituency.

Palayam town panchayat is 40 km from Dindigul, Dindigul district headquarters; It is also 35 km from Karur.

As of 2011 census, the municipality has 3,686 houses and a population of 15,336, an area of 25.10 km and 15 wards. Also, the municipality has a literacy rate of 71.9% and a sex ratio of 988 females per 1,000 males. Child Sex Ratio There are 895 female children per 1000 male children. Scheduled Castes and Scheduled Tribes are 1,525 and 1 respectively.

10°43′33″N 78°08′10″E / 10.72583°N 78.13611°E / 10.72583; 78.13611