Palmer, a 48-year-old father, was one of three people killed in Britain's most lethal terror attack since the 2005 public transit bombings.
The assailant drove a car through crowds of people, injuring dozens before crashing into a fence near London's Houses of Parliament.
Witnesses said the attacker then got out of his car, brandishing the knife that he used to fatally stab Palmer.
A member of the parliamentary and diplomatic protection command, Palmer was not carrying a gun, said Rowley, Britain's most senior counterterror police officer.
Bystanders rushed to Palmer's aid as he lay bleeding on the cobblestone street, including Conservative Member of Parliament (MP) Tobias Ellwood. But there was nothing they could do.