Embedding efficiency is an important issue in steganography methods. Matrix embedding (1, n, h) steganography was proposed by Crandall to achieve high embedding efficiency for palette images. This paper proposes a steganography method based on multilayer matrix embedding for palette images. First, a parity assignment is provided to increase the image quality. Then, a multilayer matrix embedding (k, 1, n, h) is presented to achieve high embedding efficiency and capacity. Without modifying the color palette, hk secret bits can be embedded into n pixels by changing at most k pixels. Under the same capacity, the embedding efficiency of the proposed method is compared with that of pixel-based steganography methods. The comparison indicates that the proposed method has higher embedding efficiency than pixel-based steganography methods. The experimental results also suggest that the proposed method provides higher image quality than some existing methods under the same embedding efficiency and capacity.