The Stoke City midfielder let his international side down after picking up a second yellow card on the stroke of halftime during Honduras' 3-0 defeat to France last night.
He was perhaps lucky to still be on the pitch even before receiving his marching orders after an altercation with Paul Pogba could have earned Palacios a straight red.
The 29-year-old appeared to stamp on Pogba twice and the Frenchman reacted by kicking out, to which Palacios responded with a theatrical fall in an attempt to get the youngster sent off, but they both picked up just a yellow.
It was another tussle with Pogba that saw Palacios receive a second yellow card just before half time as he needlessly shoved the Juventus man in the back in the penalty area.
Palacios was off and his Honduran side were left in real trouble as Benzema netted the subsequent penalty before Les Bleus went on to win 3-0.
La Bicolor are now without their star midfielder and face an uphill battle to make it out of the group, as Palacios will miss the remaining two group fixtures against Ecuador and Switzerland..
The former Spurs man's absence will leave Honduras short of a player who can break up play and start attacking moves, and they will struggle to replace him.
It could also affect his Stoke career, as the World Cup was an opportunity for Palacios to prove that he could still perform at the highest level, but he failed miserably in his attempt to do so.
Having only started 14 Premier League games during his time at the Potters, the midfielder may now need to move on if he is to find regular first-team action as his display in Brazil will not place him any higher in Mark Hughes plans for the next campaign.
Stoke paid £16 million to Spurs in a double deal that saw Peter Crouch and Palacios make the switch to the Britannia and the club may now look at offloading the Honduran who has just one year remaining on his contract.
He did enjoy more playing time under Hughes last year, but his red card last night will not have made him any more likely to start for the Potters next season.