Born in Varemurru village, Saulepi Parish, Lääne County (now Matsi village, Varbla Parish, Pärnu County), Palusalu is best remembered for winning two gold medals at the 1936 Olympic Games in Berlin.
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He made about 40 films in his career with 10 films still in existence − five newsreels, four documentaries, and one work of fiction, the political satire Karujaht Pärnumaal (Bear Hunt in the Pärnu County).
In Pärnu county there is the oldest known human settlement in Estonia, from town of Sindi 2 km upstream by Pärnu River, near village Pulli.