Palčič, a painter, printmaker, set designer, illustrator, and costume designer, was born on 30 August 1940 in Trieste. After graduating from a science high school in Trieste, he pursued art studies at the Art Institute in Venice, graduating in 1964. During the 1960s, he was a member of the Trieste group Raccordosei – Arte Viva and taught drawing and art history in Slovenian high schools in Trieste and Gorizia. In the 1970s, he founded and led a graphic studio at the Trieste Publishing House. In 1984, he received the Prešeren Fund Award for Fine Art and Set Design. His work was influenced by A. Černigoj, the elder of Trieste painters, who encouraged a contemporary, imaginative approach.

As an artist, Palčič showed versatility across various fields, from painting, graphics, and drawing to set design, costume design, and book illustration. Critics divide his work into two main periods: an initial decade of exploratory, distinctive style development, followed by a period that places him among the masters of European art.