Koror, the principal city and island area of Palau (though not the largest), is where most visitors stay. This is a convenient base for exploring Babeldoab and the Rock Islands. Returning visitors will notice that it is becoming more modern and traffic is getting worse. It has restaurants and stores and some excellent budget hotels as well as the oceanfront Palau Pacific Resort, a high-end hotel in the suburb of Meyuns. If you are not staying there, you can use the hotel's facilities (a pool as well as great close-in snorkeling) for a fee.

Visit the Belau National Museum to catch up on the islands' cultural history and the Senior Citizens Center to watch seniors teaching handicraft traditions to a new generation. The Etpison Museum also has superb displays and a great restaurant/gift shop. The Palau Aquarium is a welcomed addition. It is the interpretive division of the Palau International Coral Reef Center and has lots to offer. See the many exhibits there including chambered nautilus.

For nightlife, you'll find most of Palau's clubs on the commercial island suburb of Malakal. There are also a number of restaurants located there. During the day, pay a visit to Malakal to see the Micronesian Mariculture Demonstration Center (MMDC), a commercial clam farm raising many species of giant clams. The largest can weigh up to half a ton (almost 500 kg).