Palettes are the mechanism used to create and draw different "line types" to indicate different meanings and purposes for geometric entities. The palette of an entity controls how it is displayed on the screen, how it is plotted or otherwise used to manufacture the job, and how certain tools work with the entity. Palettes are defined in each drawing. The palettes for the current drawing are available in a pull-down list on the Design Bar - the palette showing is the "current palette". In general, new entities are assigned the current palette. You can view or modify the Palette Attributes of any palette by:
Clicking the edit button 
beside the list on the Design Bar
Using Options - Project and choosing Palettes from the Design Options form
Using the Palette page of the Impact Explorer
New palettes can be defined in a project at any time. However, it is recommended to define all the palettes you need in a template and then create your projects from that template. You can have one template with one set of palettes for all your jobs, or you may prefer different templates for different types of job. Palettes can also be defined in the Master Template, causing them to be locked from modification in individual projects or templates.
Palette groups are a way of ensuring your palette list on the Design Bar does not get too long and difficult to use. Simply create a group and define which of your palettes should be in the group. Then, when you have the palette group shown on the Design Bar, only palettes within that group are shown on the list. A palette can belong to any number of palette groups.
To change the palette of an existing entity, use Edit - Entities - Change Palette or the Entity Inspector.
Certain types of entities (such as text, dimensions and construction entities) can be automatically assigned a particular palette - see Design Options.
Related topics: Palette Groups.