It was the second time in three years that Toulon had fallen at the final hurdle in European competition having been beaten by Cardiff Blues in the 2010 Amlin Challenge Cup Final in Marseilles.
Palisson and co now turn their attentions to this Saturday's Top 14 play-off with Racing Metro amid the realisation that their entire season could come crashing down in the space of a week.
But rather than worry about what a double disappointment would mean to a club that hasn't won a trophy in 20 years, Palisson says he and his team-mates will use the loss to Biarritz as extra motivation at the Stade Felix Mayol.
"I have a big headache in terms of the disappointment from Friday but, while the season is over for Biarritz, we still have a game to play and maybe more than one," said Pallison.
"It will be very tough for sure. But we have the chance to play a Top 14 play-off game at home so we must win it for our supporters.
"We must be careful not to view the final as a huge failure. Even with two yellow cards, we only lost the game by three points and we could have got a draw in the final few seconds. It wasn't a catastrophe even if losing a final is always tough to accept.
"I'm not afraid about the after effects on the squad. I am sure this disappointment will help the team to bounce back. It's not the fear of losing which is driving us but the will to win.
"We don't have a choice: one more defeat and the season is over. It's the kind of situation which gives you additional motivation."