Palacio Restaurant

Located in the heart of Santa Fe at 209 E Palace Ave, Palacio Restaurant is a must-visit destination for lovers of authentic New Mexican and American breakfast and lunch fare. This cozy, family-run spot welcomes you with a warm, inviting atmosphere where classic flavors and local charm come together beautifully. Whether you're starting your day or taking a midday break, Palacio offers an impressive lineup of dishes that celebrate the rich culinary traditions of the Southwest with fresh, flavorful twists.

The menu at Palacio is a delightful exploration of comforting, crave-worthy options. Start your morning with their signature Huevos Rancheros, featuring two sunny eggs atop yellow corn tortillas smothered in your choice of vibrant green or red chile, accompanied by crispy hash browns and a warm flour tortilla. For a heartier option, the Smothered Veggie Breakfast Burrito, brimming with eggs, mushrooms, spinach, tomatoes, and peppers, delivers a satisfying blend of textures and tastes that speak to the soul of New Mexican cuisine.

If classic American breakfast staples are more your style, the Palacio Breakfast plate offers perfectly cooked eggs any style alongside savory bacon or sausage, golden hash browns, and toast—a comforting way to fuel your day. Fans of savory indulgence will also appreciate the rich and creamy Eggs Benedict, which are executed with care, providing a luscious balance of buttery English muffin and delicate hollandaise sauce.

As the day progresses, the lunch menu shines with standout dishes like the juicy Steak Tacos, bursting with tender, seasoned beef that pairs wonderfully with smoky green or red chile. The Smothered Burrito and hearty Green Chili Stew offer soul-warming layers of flavor that feel like a warm embrace on a cool Santa Fe afternoon. The Taco, Meat Nachos, and the beloved Frito Pie add a playful, satisfying variety for those ready to sample the bold, comforting tastes of the region.

Beyond mains, Palacio’s lighter fare such as the crisp Pear Salad provides a refreshing counterpoint, expertly balancing the rich Southwest spices. Don’t miss their dessert offerings like the velvety Tres Leches Cake or the traditional Flan, both of which have earned glowing praise from visitors.

The beverage selection complements the menu beautifully. Patrons rave about the bold and rich Dark Mocha—a perfect pick-me-up at any time of day—and the expertly crafted Margarita that pairs effortlessly with the vibrant flavors of the food. There’s also a thoughtful selection of fresh juices and classic beverages like homemade lemonade and unsweetened tea.

What truly makes Palacio stand out is the heartfelt hospitality and genuine spirit infused in every visit. Guests frequently highlight the friendly, attentive service and the chance to connect with Chef and owner Damian Muñoz, whose passion and inspiring story enrich the dining experience. The atmosphere strikes a perfect balance between casual and intimate—an ideal setting for families, food enthusiasts, and visitors eager to savor authentic New Mexican cuisine away from the tourist crowds.

Reviewers consistently remark on the heartfelt authenticity of Palacio’s dishes, often calling it a hidden gem that surprises and delights with every bite. Whether it’s the perfectly spiced Chile Relleno Plate or the fresh, creative take on sandwiches, this establishment keeps diners coming back to explore the full depth of its menu offerings.

If you find yourself in Santa Fe craving a memorable meal that captures the essence of the Southwest’s culinary heritage, Palacio Restaurant promises a satisfying journey of vibrant flavors, welcoming ambiance, and heartfelt service. It’s more than just a restaurant—it’s a celebration of tradition, passion, and community on every plate.

Contact Info: 209 E Palace Ave, Santa Fe, NM 87501, United States | Phone: +1 505-989-3505