Palayam, also spelt Palaiyam, is a small settlement in Dindigul District, Tamil Nadu. The place spans over an area of around 24 sq km. Eriodu is situated in the south,
Sriramapuram in the south-west,
Uppidamangalam in the north-east and Karur in the north.
The nearest airport is Madurai Airport. Palaiyam Railway Station serves the town. Palayam can be approached by road from Dindigul and Karur.
