Palmwoods State School buildings are attractively set in spacious grounds which house many gardens and some very fine specimens of trees, copious facilities including three playing fields, two adventure playgrounds, multipurpose court, basketball/netball court, cricket pitch and AFL posts which have been provided for the pupils. The school has developed beautiful areas of rainforest with walking tracks through them.
The school buildings provide for classrooms, a school library, performing arts room, outdoor learning centre, hall and administration block. Although original classrooms are constructed along very traditional lines, every endeavour is made to make the classrooms into functional, creative and attractive learning environments. The school also has an Outside School Hours Care service in a modern building.