Abja-Paluoja is a town in Mulgi Parish, Viljandi County, in southern Estonia. Abja-Paluoja got the town status and became a separate urban municipality in 1993.
First documented records of the Abja manor and village date from 1457 (Abbalis et Meitzekull).
From 1897 to 1973, the railway line passed through Abja-Paluoja, and there was a railway station in the town.
In 1913, a flax factory was established near Abja-Paluoja because flax cultivation had developed in the area.
The Abja Gymnasium (secondary school) was opened in 1940.
Abja-Paluoja was the centre of Abja raion from 1950 to 1962. Abja-Paluoja gained town rights and became a separate urban municipality in 1993. In 1998, it was merged into surrounding rural municipality (Abja Parish) and was its administrative centre until 2017.