Lake Palojärv is a clean-water forest lake with a sandy bottom, surrounded by a beautiful pine forest. In summer, Lake Palojärv is one of the warmest lakes in Estonia, so it is a very popular swimming and recreation destination. There is a small playground for children near the swimming area. In summer, it is often crowded here, because in addition to swimmers, there are also campers and the area around Lake Palojärv is popular for picking berries and mushrooms.

There is a 1.5 km long hiking trail around the lake.