The 25-year-old midfielder joins the Tractor Girls following the expiry of her contract at fellow WSL 2 side Southampton.
Palmer, who has represented England up to U21 level., started her career Bristol City, making her senior debut as a 16-year-old.
She joined newly formed Manchester United in 2018, helping them win the Championship title in her first campaign before a season-long loan with Sheffield United.
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Aimee Palmer in action for Manchester United. (Image: PA)
The Norfolk-born midfielder returned to the Robins in 2020, where she also helped them win promotion to the women's top flight in 2022/23 season.
A move to Leicester City followed, before spending the last two seasons with the Saints.
On signing for the Blues, Palmer said: “I’m really excited to be here at Ipswich.
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“After a few calls with Sean [Burt] and David [Wright] listening about the plans here, the decision was a no-brainer for me.
“I have a lot of experience to add to the group having won this league twice in my career, and I now can’t wait to get to work with all my new teammates.”
The Wymondham native becomes the Tractor Girls' fifth signing of the summer, following the transfers of wingers Rosie Livingstone and Megan Hornby, fellow midfielder Jenna Slattery and the permanent addition of Kit Graham.