Kings right wing hurt it Jan. 7
Palffy, 31, will begin rehabilitation immediately and a full recovery is expected in six months.
Kings team physician Dr. Ronald Kvitne performerd the procedure, which is expected to sideline Palffy at least six months.
Kings, which have had an abundance of injuries in recent years, watched Palffy go down Wednesday in a game against Anaheim.
A native of Slovakia, Palffy leads the Kings with 16 goals and 25 assists in 35 games. The 31-year-old has 318 goals and 353 assists in 642 career contests with the New York Islanders and Kings.
The Kings on Monday also placed center Martin Straka on injured reserve, retroactive to Monday.
Straka sprained his knee during Saturday night's 2-2 tie with Columbus. He has 10 goals and 13 assists in 40 games this season.
He was acquired from Pittsburgh on Nov. 30 and has six goals and five assists in 18 games since the trade.
Los Angeles recalled center Esa Pirnes and right wing Scott Barney from Manchester of the American Hockey League.
Information from The Associated Press and SportsTicker was used in this report.