Palm competed internationally in formula racing and rallies. He made his debut in Formula 3 in 1969 and came second to Ronnie Peterson in the Swedish Championship that year, before winning the Championship in 1970 and 1971. During the European Formula 2 Championship in 1973 he set the record on the raceway in Karlskoga, Sweden, in front of 40,000 spectators. Palm finished third in his Surtees, with Peterson in fifth place. Nobody beat the record before the circuit was rebuilt in the end of the decade. Sponsored by Polar Caravans he made his Formula 1 debut in a Hesketh in 1975. In Monaco he failed to qualify to the race. In Anderstorp, Sweden, he qualified for the race and finished 10th.