Approximately 800 miles southwest of Guam and 500 miles east of the Philippines, this island chain extends about 400 miles from north to south. Most of the 241 islands of Palau are surrounded by coral reefs; only 11 of the islands are inhabited by a population of about 20,000. Roughly one-third of these are immigrants, the largest group coming from the Philippines.

Liebenzell began its missionary work here in 1929, during a period of Japanese occupation. One missionary couple remained on Babeldaob (the country's largest island) throughout World War II, hiding in the bush and protected by the Palauan natives. Following the war, Palau remained a U.S. trust territory until its independence in 1994. A special relationship with the U.S. government continues, including use of the U.S. postal system and U.S. currency.

Palau is considered a predominantly a Christian country, although according to estimates a third of Palauans belong to the traditional Palauan religion called Modeknei, a mixture of old beliefs in spirits and Christianity. Animism remains strong, even among those who identify themselves as Christian. Liebenzell's early work focused on evangelism and church planting; today's Palauan Evangelical Church (PEC) has its roots in Liebenzell's early ministry.

In the years immediately following World War II, Liebenzell missionaries founded two Christian high schools: Emmaus, in the capital of Koror, for boys, and Bethania in a more remote setting, for girls. Today these boarding schools are administered by the PEC but Liebenzell continues to supply missionary teachers. Students comes from all over Micronesia. Not all of the students are believers, so teachers have a great opportunity for evangelism and discipleship. Enrollment ranges from 80 to 100 students at each school.

In 2004, a permanent Remote Teaching Facility (RTF) of Pacific Islands Bible College was established to offers classes aimed at training national pastors and church leaders. With the recent addition of distance education classes, students can begin a four-year bachelor degree program. Classes are held on the campus of Palau Community College, but a room in the PEC building is presently being renovated.