He led from start-to-finish in a non-stop four-lap race to beat Steve Linsdell from Flitwick (500 Paton) by 18.22 seconds after 150 miles flat-out racing on the Snaefell Mountain Course.
Third was Onchan newly-wed Derek Whalley (Aermacchi), about a further minute in arrears,
The early lead was taken by Alan Oversby (Norton) but Palmer forced to the front half-way round the first lap. Ten miles further on at Ramsey Palmer had caught Oversby and Linsdell on the road and on corrected time was eight seconds to the good. Shortly afterwards Oversby was again a mechanical retirement – his bike suffering an oil leak on the first climb of the Mountain Mile.
At the end of lap one, Palmer led Linsdell by 14 seconds at 104.8mph, with Whalley third, John Goodall fourth, Dave Madsen-Mygdal fifth and Allan Brew sixth.
Palmer did the second lap at 105.11mph and he led Linsdell by 15.92 seconds, with Whalley a further 20 seconds back. Goodall stayed fourth but Madsen-Mygdal retired allowing Brew up to fifth and Dave Hughes into sixth.
Linsdell had fitted a big petrol tank to be able to match the economy of Palmer’s Norton and he briefly nibbled the gap down. But it was only temporary and Palmer soon got back past to re-establish his advantage. Ian Lougher retired with a loose fairing, and fellow TT star Ryan Farquhar made a bid for the top six, battling hard with Hughes.
At the start of the last lap Palmer led by 15.89 seconds, with Whalley 52 seconds astern. Goodall was his usual steady self in fourth, Brew fifth and Farquhar sixth.
The last lap ran out, with Linsdell conceding defeat by Palmer and the pair roared home separated by 18.22 seconds on corrected time. Whalley cruised home third, and Goodall fourth making it four different marques in the top four places.
Brew and Farquhar completed the top six, with Hughes, Stacy Killworth, Tony Cawte and Steve Elliott completing the top 10.