India census, Palakurthi had a population of 6964. Males constitute 52% of the population and females 48%. Palakurthi has an average literacy rate of 56%, lower than the national average of 59.5%: male literacy is 66%, and female literacy is 46%. In Palakurthi, 13% of the population is under 6 years of age. Palakurthy town is famous for Sri Someshwara Laxminarasimha swamy temple which is located 1 km from town.
