Despite recording new career highs at the NHL level, Palushaj was not extended a qualifying offer by the Avalanche and was released as a free agent. On July 11, 2013, Palushaj was signed to a one-year, two-way contract with the Carolina Hurricanes. Palushaj was assigned to AHL affiliate, the Charlotte Checkers, for the majority of the 2013–14 season. He finished the year third on the Checkers in scoring with 22 goals and 58 points in 68 games, while playing in just two games on brief recalls with the Hurricanes.
At the completion of his 2012–13 season with the Avalanche, Palushaj returned to the International stage as he was selected to the United States roster for the 2013 World Championships in Sweden/Finland. He made his national senior debut in the opening game of the Tournament, scoring a goal, in a 5–3 victory over Austria on May 4, 2013. Through 9 games, Palushaj scored a goal and an assist to help USA capture its first medal at the World Championships in claiming bronze since 2004.