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Palgrave was bisected by a line of the Hamilton & North-Western Railway. The line was abandoned by CN in 1986 and has since been rehabilitated and incorporated into a multi-use regional recreational trail which is part of the Caledon Trail way, The Great Pine Ridge Trail and the Trans Canada Trail. The Bruce Trail, one of Ontario's major recreational hiking trails, passes the town roughly 1.5 km to the west.
Palgrave is home to the Caledon Equestrian Park, which played host to the equestrian portion of the 2015 Pan American Games. Many Equestrians who regularly horse show at the Caledon Equestrian Park refer to the facility itself as Palgrave.
The Church Public Inn "in the heart of the financial district" is a farm to fork restaurant in the former St. Alban's Anglican church (1865) designated heritage in 2012. Terence Cutts is the current owner.
The Albion Hills Conservation Area is located 2 kilometres (1.2 mi) south of the town and offers picnicking, camping, hiking trails, swimming, mountain biking and cross-country skiing.
The Palgrave Forest and Wildlife Area lies on the northwest periphery of the town and offers trails for hiking and cross-country skiing.
Canadian artist David B. Milne (1882–1953) lived in Palgrave for a short time from 1929 to 1932 and painted a number of scenes there. His work Kitchen Chimney depicts a view of the town's Elm Tree Hotel and is part of the collection of the National Gallery of Canada.
In 1963, Walt Disney Productions filmed the family movie "Homeward Bound: The Incredible Journey" in Palgrave.
Small housing developments were built around Palgrave in the 1950s, followed by estate home development and subdivisions beginning in the late 1960s.

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