Palmer signed to play college football at the University of Alabama. Wearing number 2 and nicknamed "The Deuce", during his career for the Crimson Tide, Palmer became the school's first 1000 yard receiver in a single season. During his junior season, Palmer was an All-American at Alabama and a finalist for the Heisman Trophy finishing 3rd in the voting. Palmer, arguably, was one of the first "wildcat" quarterbacks. He was often known to take snaps directly under center and run to the right side of the line.He is said to be one of the greatest players to ever come out of the University of Alabama.

Palmer elected not to finish his collegiate career, turning pro after the 1993 college football season. He was a second round pick for the Minnesota Vikings in the 1994 NFL Draft.