Palestine is a city in Anderson County, Texas, in the United States. As of the 2010 census, the city population was 18,712. It is the county seat. Palestine was named for Palestine, Illinois, by Daniel Parker.Palestine is a relatively small town located in the Piney Woods equidistant from the major airport cities of Dallas, Houston and Shreveport and is notable for its natural environment, including the dogwood floral blooming season, for 23 historical sites on the National Register of Historic Places and is the western terminus of the Texas State Railroad, a steam and diesel railroad museum operating between Palestine and Rusk.