Palau’s complex environmental and economic situation is explored. The nation has a growing economy and is a hotspot of marine biodiversity. Palau is taking steps to develop financial independence and continually maintain its environment, a complex challenge. For Palau, sustainability is not a goal but a necessity. The first half of the case describes Palau’s history, economics, environments, and geopolitical significance. The second half of the case explores specific challenges and decision making in Palau, closing with a pressing issue for debate.