Palo Cedro is a census-designated place in Shasta County, California, United States. It is 8 miles east of Redding. Its population is 2,931 as of the 2020 census, up from 1,269 from the 2010 census. Originally, indigenous Native Americans lived in Northern California, including what is now Shasta County, prior to European American settlement. European American exploration of inland California started in 1769 and continued on into the 19th century.