Embodiments of a multi-form factor Information Handling System (IHS) with automatically reconfigurable palm rejection are described. In an illustrative, non-limiting embodiment, an IHS may include: a processor and a memory coupled to the processor, the memory having program instructions stored thereon that, upon execution by the processor, cause the IHS to: identify a posture of a second display relative to a first display; select a palm rejection setting corresponding to the posture; and apply the palm rejection setting to at least one of: the first display or the second display.