We don't have synonyms for pallywood yet — it may be a rare, specialized, newly coined, or misspelled word. The closest thesaurus entries we have are plywood, hollywood and mollywood.
(n) :
(politics, derogatory, offensive, ethnic slur) The alleged manipulation or distortion of the media by Palestinian sources to promote a pro-Palestinian point of view; Palestinian propaganda.
(n) :
(politics, derogatory, offensive, ethnic slur) The alleged manipulation or distortion of the media by Palestinian sources to promote a pro-Palestinian point of view; Palestinian propaganda.