Palmdale is in eastern Derry Township and is bordered to the north, west, and south by the community of Hershey. The eastern border of Palmdale is with the borough of Palmyra in Lebanon County.
U.S. Route 422 (E. Chocolate Avenue) is the main road through Palmdale. To the east it leads 12 miles (19 km) to Lebanon and 40 miles (64 km) to Reading, while to the west it leads via US 322 17 miles (27 km) to Harrisburg.