Palayam is one of the important commercial and busiest places in Thiruvananthapuram city. It is situated midway between Statue and PMG Junction. On either sides of Palayam are impressive buildings, offices, hospitals, colleges and historical monuments.

At Palayam, the famous St. Joseph’s Cathedral, Juma Masjid and a Ganapathy temple are situated very close to each another, a rare example of communal harmony. The mosque and the temple share the same wall. The Connemara Market in Palayam, established two centuries ago, is visited by a large number of residents of Thiruvananthapuram to buy household items.

Major landmarks in Palayam include the Victoria Jubilee Town Hall (VJT Hall), Martyr's Column, University College Library, Fine Arts College, State Central Library, Chandrasekhran Nair Stadium and University of Kerala. Also located at Palayam, is the new building where the Legislative Assembly of Kerala meets. A new underpass is being constructed to ease the traffic congestion at Palayam and surrounding areas.