In return, the Devils received 27-year-old forward Maxim Tsyplakov.
There is no salary retention as part of the deal.
Palat, who was selected to the Czechia Olympic roster, has four goals and six assists through 51 games this season, while Tsyplakov has one goal and one assist through 27 games.
Tsyplakov has one year left on his two-year deal and has a $2.25 million cap hit. Trade buzz was already forming around the forward as he never meshed with the team despite multiple opportunities.
Palat carries a $6 million cap hit and also has one more year left on his deal.
Palat's career
Palat is a 14-year veteran and two-time Stanley Cup champion during his Tampa Bay Lightning years (2012-2021).
He made his debut during the 2012-2013 season with the Lightning. A year later, he posted 23 goals and 36 assists in 81 games, making the All-Rookie team.
Palat would never go on to score more than 20 goals in a season since.
He joined the Devils ahead of the 2022-2023 season when he was 31 years old and is 19 goals away (181) from hitting 200 on his career.
The Islanders currently sit in third place in the Metropolitan Division with a 28-19-5 record (61 points).
New Jersey sits in sixth place in the Metro with a 27-23-2 record (56 points).