Palau, officially the Republic of Palau, is a sovereign island nation located in the Micronesia subregion of Oceania in the western Pacific Ocean. Comprising an archipelago of approximately 340 islands, it is geographically situated near the western chain of the Caroline Islands. The nation's economy is heavily reliant on tourism and fishing, while its culture is deeply rooted in its Polynesian and Micronesian heritage. The capital, Ngerulmud, is located on the island of Babeldaob, which serves as the primary administrative and commercial center.