Ponapea palauensis is only found in Palau, where the species' range is on the three islands: Aulupse’el, Koror and Ngermalk. The extent of occurrence and area of occupancy are both 8 km² and the species is known from three locations. It occurs in a protected area but the main threat to the species is believed to be two introduced parrots, who kill whole trees as they are feeding on its parts. The species is assessed as Endangered.

This species is endemic to Palau, on the islands Aulupse’el, Koror and Ngermalk.

This species has a very small and restricted range. It is considered rare and has a scattered distribution within its range. It was estimated that the total mature population consists of 622 individuals, and at least 95% of the individuals occur in one subpopulation (Costion et al. 2013). In 2022 the subpopulation of Ponapea palauensis on Ngermalk Island was surveyed by the Belau National Museum Natural History and Koror State DCLE, and 42 individual trees were measured and georeferenced.

This is a palm tree, up to 10 m tall. It is restricted to the limestone karst forests on Palau’s Rock Islands, near depressions that are damp or near lakes.

Two introduced parrots, Papuan Eclectus (Eclectus polychloros) and Sulphur-crested Cockatoos (Cacatua galerita), are known to feed on the terminal bud of the palms, killing entire trees. The habitat is threatened by urbanization on some of the islands.

There is no information on use or trade for this species.

The range of this species falls within a protected area. It is kept in at least one ex situ collection (BGCI 2023). Ex situ conservation efforts are carried out, and propagation and seedling translocations has in 2022 expanded the species' habitat within the Koror State by 12.06 hectares.