11450 State Hwy Park Rd 5, Canyon, TX 79015-8747, USA. Despite being home to the second-largest canyon in the country, Palo Duro Canyon State Park often flies under the radar for many travelers. The park’s isolated location is a big reason for this, although that isolation is also part of the appeal. In the off-season, if you’re hiking in the early morning, you’re likely to have the trails all to yourself. At Palo Duro, million-year-old caprock formations and 120 miles of wild, pristine canyon combine to create an otherworldly expanse.