Palmyra is a village in Otoe County, Nebraska, United States. The population was 545 at the 2010 census. Palmyra is a community just 10 minutes Southeast of Lincoln, Nebraska. Traditionally, on the second weekend of June, the Palmyra Action League hosts the “Old Settlers Picnic.” This is a family friendly event with games for the kids, a parade, pedal tractor pull, street dance, wine tasting and other activities.