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Palo began his career with the HPK Hämeenlinna in 1985. For that season and the next two, he would spend his time between the main club, then in the I.Divisioona, and HPK's junior club of the Junior A SM-sarja; he became a regular as the team gained promotion to the SM-Liiga in 1988. He stayed with the HPK until the end of the 1993-94 season; he would then make a two seasons stint in the Elitserien with the HV 71 and Malmö IF Redhawks before returning to HPK in 1996. He would spend the remaining of his career there, except for one season with the Blues Espoo, a 3 games stop with the HC Vsetin of the Czech Extraliga and one season with the Ässät Pori, his last season before retiring in 2002.
Palo took part in three World Championships for Finland, the 1993, 1994 and 1995 ones, as well as the Olympic Games of 1994 in Lillehammer, where he earned a bronze medal with the Finnish National Team.
Palo has been inducted to the Finnish Hockey Hall of Fame and is Jääkiekkoleijona # 167.