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From Terraria Wiki
Palm Wood is a type of wood harvested from Palm trees found naturally growing in the Ocean biome. Only regular Palm trees that are growing on regular Sand will drop Palm Wood. Palm trees that are growing on Ebonsand, Crimsand, or Pearlsand will be corrupted, and instead drop Ebonwood, Shadewood or Pearlwood, respectively. Palm Wood can be cultivated by placing an Acorn on top of a regular Sand Block.
These recipes use "any wood" (any combination of the various forms of wood).
- Fixed bug where Palm Wood and Boreal Wood wouldn’t merge with other wood types.
- Fixed bug where Palm Wood and Boreal Wood were not blocking light.
- Fixed bug where Palm Wood weapons could not get prefixes.
- 1.2.4: Introduced.