His most notable achievement was scoring a buzzer beater for the Celtics in their shocking victory over the New Jersey Nets on December 28, 2000. With the Nets leading 111–109 and inbounding the ball with less than 2 seconds remaining, Palacio stole a pass from Lucious Harris and threw up an off-balance shot with one hand from 30 feet away. Improbably, the shot was made, giving the Celtics a 112–111 victory. Basketball writers dubbed Palacio with the nickname "Miracle Milt", as a recognition of this incredible incident.