The Central Americans are preparing for their third finals appearance, and second in succession, and hope to reach the second round for the first time.
Honduras are alongside 1998 winners and 2006 runners-up France, Switzerland and Ecuador in their pool.
On paper, France appear favourites to top the group with the other three sides set to battle it out for the remaining qualification spot, but Stoke City midfielder Palacios believes their opponents' lack of knowledge of Honduras could work in their favour.
"We know about the other teams in Group E," he said.
"I know all the players in France, Switzerland and Ecuador, but France and Switzerland don't know much about us."
Honduras came in for criticism for their physical approach in their 0-0 friendly draw with England in the build-up to the tournament.
However, France striker Loic Remy insists they will be "ready for physical combat", while midfielder Blaise Matuidi holds no concerns over their opponents' style of play ahead of their fixture on Sunday.
"We are not afraid, for that there is a referee to enforce the law," he said.
