How to Modify Item Drop Penalty on a Palworld Server

By default, players in Palworld lose all items when they die. You can customize this by adjusting the server’s death penalty settings.

Change Palworld Death Penalty Setting

Login to the game control panel
Navigate Palworld Settings tab
Find the DeathPenalty option in the settings list
Select the dropdown and choose your preferred penalty (list of all penalty options)
Restart your server to apply the new death penalty setting

Players will now experience the updated drop penalty based on your selection.

Here are the following death penalties you can use on a Palworld server:

Setting	Description
None	Nothing is lost on death.
Item	Lose items but keep equipment.
ItemAndEquipment	Lose all items and equipment.
All	Lose all items, equipment, and Pals (default).