The Pirates activated Palacios (hamstring) from the 10-day injured list Monday and optioned him to Triple-A Indianapolis, Noah Hiles of the Pittsburgh Post-Gazette reports.
Palacios is done with his rehab assignment from a strained left hamstring, but the Pirates have elected to keep him at Indianapolis rather than adding him to the big-league roster. He's put up a .663 OPS in 20 games with Pittsburgh this season.