EXHIBIT 23.1


                          INDEPENDENT AUDITOR'S CONSENT


We consent to the  incorporation  by reference  in  Registration  Statement  No.
333-108108  of  Palmetto  Bancshares,  Inc.  on Form  S-8 of our  report,  dated
February 6, 2004,  appearing  in the Annual  Report on Form 10-K filed March 15,
2004 of Palmetto Bancshares, Inc. for the year ended December 31, 2003.



/s/ Elliott Davis, LLC
Greenville, South Carolina
March 26, 2004