Meet Palo Duro CanyonLocated near Amarillo, Texas, Palo Duro Canyon is the crown jewel of the Texas Panhandle. Charlie Hardin Charlie Hardin loading...Palo Duro Canyon State Park is just one portion of the immense space occupied by the canyon. READ MORE: Texas’ Palo Duro Canyon: How to Explore the Second-Largest Canyon in the U.S.Trails & HighlightsHiking is a major activity in Palo Duro Canyon State Park. Charlie Hardin Charlie Hardin loading... Take A Quick Look Inside One Of Palo Duro Canyon's Caves Check Out These Photos Of The Hidden Cave In Palo Duro Canyon.