The 19-year-old was on hand to collect the award at Melbourne's Grand Hyatt Hotel.
It comes less than a week after his outstanding debut season was acknowledged by being named the 2008 NAB AFL Rising Star, winning the Ron Evans Medal ahead of Hawthorn's Cyril Rioli, Richmond's Trent Cotchin and Melbourne's Cale Morton.
The always hotly contested AFLPA Best First Year Player award recognises the difficulties that first year players must overcome. Palmer picked up 252 votes to win from Rioli (167) and Cotchin (80).
The AFLPA awards are highy regarded by the players because they are the only awards voted on by the players themselves.
