In Palworld, when you die you'll lose all of your items by default. That is not very fun when you have to go find where you were and reclaim everything. If you're in for a more casual gameplay experience, you can change this setting to your liking.
1. Open the the Basic Server Settings
2. Scroll down to DeathPenalty
3. By default, this is set to All, the possible values are as following:
None
- Nothing is lost on death.
Item
- Lost your items, but keep your equipment
ItemAndEquipment
- Lost all items and equipment
All
- Lose all items, equipment, and Pals in your inventory
4. Save and Restart the server