Palacio's good form continued in 2014, scoring the opening goal of the match after a corner kick taken by Ángel Di María on 4 June in a 3–0 win against Trinidad and Tobago. Later in that match, he made a good run by dribbling the goalkeeper and assisted the third goal of the match scored by winger Ezequiel Lavezzi. After playing another friendly match against Slovenia, the team traveled to Brazil to play in the 2014 World Cup; he was included on the list of 23 players selected by coach Alejandro Sabella to participate. Notably he received a brilliant opportunity to score in the final against Germany during the 7th minute of extra time, when he received an exceptional pass from Marcos Rojo and controlled it with his chest, which left him one-on-one with the keeper, but his attempt to lob the ball over Manuel Neuer missed the goal completely. After the match, a phrase that said "Era por abajo, Palacio" (It was through the bottom, Palacio) became viral.