Palūšė village is situated on the bank of Lūšė lake. It is the capital of Aukštaitija National Park and many cultural events of the park takes place here in Palūšė.
The village was first mentioned in 1651. It was the part of Šumskai manor.
Mikas Petrauksas, famous Lithuanian composer was born in Palūšė. His father was the organist of Palūšė church and married here his mother. Mikas Petrauskas is the author of first Lithuanian opera „Birutė“.
Now Palūšė is a famous place for tourists and travelers. There are a few resorts and camping places. One can rent a boat here in summer or slides in winter.