The UFC announced the injury on Thursday night.
Palaszewski had been rescheduled to face Gleison Tibau on the card, and Tibau will stay on the card against the returning Rafaello Oliveira.
Oliveira went 1-2 in his first stint in the UFC, going the distance in all of his fights. His losses to Nik Lentz and Andre Winner sandwiched a win over John Gunderson. Since his release in March of 2010, Oliveira has won four straight fights, leading to his return.
UFC 130 takes place on May 28 from the MGM Grand Garden Arena in Las Vegas, Nevada, headlined by the light heavyweight fight between Quinton "Rampage" Jackson and Matt Hamill.
Penick's Analysis: This card has been ravaged by injuries, and it's unfortunate that the original fight here was lost. Still, they've done a good job of salvaging a preliminary card fight here by bringing Oliveira back for a fight with Tibau. He's a solid competitor, and taking a late notice fight will allow him another opportunity even if he comes up short against Tibau here.