Palace Green is a small area of grass in the centre of Durham in England, flanked by Durham Cathedral and Durham Castle, collectively a UNESCO World Heritage Site.

It is situated atop the narrow, high peninsula formed by a sharp bend in the River Wear. The Cathedral is on the southern side, facing the Castle across the Green on the north side. To the west are Durham University buildings including the law and history departments, with the music department and a small branch of the library to the east.

Palace Green is accessed by two cobbled streets called Owengate and Dun Cow Lane , the latter named after the bovine protagonist of Durham's founding legend, in which a holy cow accompanying a religious group fleeing persecution chose to lie down where Durham now stands, thus deciding where the band should settle and found the Cathedral.