Palacios, 23, beat out 83 other women at the pageant in Sal Salvador, El Salvador. It's the first time in history that Nicaragua has won the Miss Universe competition, making Palacios' victory momentous.
Palacios has a mass communications degree from the Universidad Centroamericana, which she takes pride in because she had anxiety attacks during her studies, according to her contestant bio.
Take a look at the five outfits Palacios wore during the competition.
Palacios donned a sheer beaded gown during the preliminary competition.
Miss Nicaragua during the Miss Universe preliminary competition on November 15.
Hector Vivas/Getty Images
The Miss Universe delegates participated in a preliminary competition three days before the official festivities. At the time, Palacios walked the stage wearing beige stiletto heels and a sheer floor-length gown adorned with blue and purple beads.
Palacios kicked off the competition in a glittering pink minidress.
Left to right: Miss Nicaragua, Miss Spain, Miss Puerto Rico, Miss Namibia, and Miss Venezuela.
Alex Peña/Getty Images
During her introduction, Palacios wore a strappy pink minidress with a slight slit and silver stilettos that sparkled beneath the stage lights. Per the official Miss Universe X account, Clarisse Designs created the contestants' introduction gowns.
Palacios' national costume drew inspiration from a bird native to Nicaragua.
Miss Nicaragua during the national costume competition.
Courtesy of Miss Universe
Palacios wore a sparkling black and blue bodysuit with purple accents throughout. The ensemble, designed by Jorgito Salazar, featured a feathered train, elaborate wings, and a matching headpiece.
On Instagram, Palacios said she modeled her national costume after the Nicaraguan grackle, a bird indigenous to her country.
During the swimsuit competition, Palacios wore a baby pink strapless bikini.
Miss Nicaragua during the swimsuit competition.
Hector Vivas/Getty Images
The official Miss Universe X account posted that Rubin Singer designed Palacios' swimsuit. Her bikini featured a strapless top adorned with ruffles and bikini bottoms with small cutouts along the hip.
We're kicking off the swimsuit portion of the competition with Nicaragua @Sheynnispalacios_of in her @RubinSinger swimsuit!
Her evening gown featured an assortment of jewelry and a blue cape.
Palacios during the evening gown round at Miss Universe.
Hector Vivas/Getty Images
Palacios' shimmering off-the-shoulder gown was adorned with an array of jewels intricately placed along the bust and the length of the fabric on each side. She paired the gown with sheer gloves decorated with jewels and a blue cape.
Palacios wore the gown when she was crowned Miss Universe.
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