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The great success in Manila, Philippines of his ballet The Legend of Mount Bangkay in 1980, which he himself conducted, led Palomo to reduce his conducting activities and concentrate on his work as a composer. This long period as a conductor had its positive side for the composer, since during those years Palomo forged and matured a personal style while his conducting work gave him in-depth knowledge of the resources of the orchestra. His Spanish Songs, given their first performance by Montserrat Caball at the Carnegie Hall, New York, in 1987, are known world-wide. The world premire in Berlin in January 1996 of his Andalusian Nocturnes for guitar and orchestra marked the hitherto greatest success of Palomos career. The work was performed by Pepe Romero and the Berlin Radio Symphony Orchestra under the baton of Rafael Frhbeck de Burgos.

In 1999 Lorenzo Palomo won a competition organized by the Rochester Academy of Medicine (University of Rochester, New York) to celebrate its Centenary. A commissioned piano trio had its premire at the Rochester Academy of Medicine in November 2000. In June 2001 Palomo achieved a new outstanding success with the world premire of his Cienfuegos Concerto for four guitars and orchestra. This work was commissioned by the Society of Composers of Spain. On this occasion it was performed at the Teatro de la Maestranza in Seville by the Romeros Guitar Quartet and the Seville Royal Symphony Orchestra conducted by Rafael Frhbeck de Burgos. December 2002 brought the successful world premire of Lorenzo Palomos suite-fantasy for soprano, clarinet and orchestra, Cantos del alma, performed in Barcelona by the Barcelona Symphony Orchestra under the baton of Jess Lpez Cobos.