Pálsdóttir is an Icelandic and Faroese patronymic meaning "daughter of Páll". It is not a family name. Notable people with the surname include:
Andrea Mist Pálsdóttir (born 1998), Icelandic footballer Arna Sif Pálsdóttir (born 1988), Icelandic handball player Eivor Pálsdóttir (born 1983), Faroese singer-songwriter Elinborg Pálsdóttir (born 1996), Faroese singer-songwriter Ólöf Pálsdóttir (1920–2018), Icelandic sculptor Ólöf Helga Pálsdóttir (born 1985), Icelandic basketball player Sigrún Pálsdóttir (born 1967), Icelandic writer Þorbjörg Pálsdóttir (1919–2009), Icelandic sculptor