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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 ahKFa2geMUTZKAXt2LrzKg==

<SEC-DOCUMENT>0001382224-08-000078.txt : 20081217
<SEC-HEADER>0001382224-08-000078.hdr.sgml : 20081217
<ACCEPTANCE-DATETIME>20081217190555
ACCESSION NUMBER:		0001382224-08-000078
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081217
FILED AS OF DATE:		20081217
DATE AS OF CHANGE:		20081217

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PALM INC
		CENTRAL INDEX KEY:			0001100389
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER TERMINALS [3575]
		IRS NUMBER:				943150688
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0602

	BUSINESS ADDRESS:	
		STREET 1:		950 W. MAUDE AVENUE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94085
		BUSINESS PHONE:		4086177000

	MAIL ADDRESS:	
		STREET 1:		950 W. MAUDE AVENUE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94085

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PALMONE INC
		DATE OF NAME CHANGE:	20031029

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PALM INC
		DATE OF NAME CHANGE:	19991203

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Bell Michael
		CENTRAL INDEX KEY:			0001421857

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-29597
		FILM NUMBER:		081256094

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(408) 617-7000

	MAIL ADDRESS:	
		STREET 1:		950 W. MAUDE
		CITY:			SUNNYVALE
		STATE:			CA
		ZIP:			94085-2801
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgardoc.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-12-17</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001100389</issuerCik>
        <issuerName>PALM INC</issuerName>
        <issuerTradingSymbol>PALM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001421857</rptOwnerCik>
            <rptOwnerName>Bell Michael</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>950 W. MAUDE AVE.</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SUNNYVALE</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94085-2801</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>SVP Product Development</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-12-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>64250</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>64250</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Restricted Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-12-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>100000</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>2.2</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-12-17</value>
            </exerciseDate>
            <expirationDate>
                <value>2009-12-06</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Performance Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>100000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">All 100,000 performance shares vested as of December 17, 2008.  35,750 shares were not issued as a net exercise to cover withholding taxes at $2.20/share in accordance with the performance share agreement.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>By: Karen L. Harrison, Attorney-in-Fact  For: Michael A. Bell</signatureName>
        <signatureDate>2008-12-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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