1. A person from Palau: This is the most common meaning. Palau is a small island nation in the western Pacific Ocean. A Palauan is someone who was born in Palau or who has citizenship there.
2. The Palauan language: This is the official language of Palau, a member of the Austronesian family of languages. It's closely related to the languages of other nearby islands, such as Yap and the Philippines.
So, when someone says "Palauan," they are likely referring to a person from Palau. However, the context might indicate that they are talking about the language.