Teresa Palmer immediately went to work on back to back film projects including December Boys (2007) opposite "Harry Potter" star Daniel Radcliffe; a coming of age story about four adolescent orphans, based on the book by Michael Noonan and directed by Rod Hardy (Robinson Crusoe (1997), Buffalo Girls (1995) (TV), "The X-Files" (1993) and "The Practice" (1997)).
Teresa Palmer also stars as stripper-turned-criminal "Dale" in the UK/Australian co-production Restraint (2008), a film noir/psychological thriller which follows the plight of a pair of fugitives on-the-run from a murder scene. Directed by David Denneen, the film also features former Calvin Klein model Travis Fimmel and UK actor Stephen Moyer.
In 2006, Teresa Palmer worked with Japanese director Takashi Shimizu on the Sony Pictures production The Grudge 2 (2006). Set in Tokyo, the horror sequel to the box office hit The Grudge (2004) also stars Sarah Michelle Gellar and Jennifer Beals. Later that year, she signed on to play the female lead in Doug Liman's action fantasy flick Jumper (2008), but was subsequently replaced by Rachel Bilson.
Early 2007 saw her star opposite former real-life boyfriend Topher Grace as the love interest in the upcoming retro comedy Take Me Home Tonight (2011). Shortly after filming ended, Teresa Palmer decided to move permanently from Adelaide to Los Angeles following a public split from her then-boyfriend of two years, Australian Rules football star Stuart Dew. Teresa Palmer was due to play a small part in George Miller's doomed superhero film "Justice League: Mortal", but the production fell through after months of problems. Teresa Palmer briefly dated her "Justice League: Mortal" co-star Adam Brody in early 2008; later that year, she had a relationship with UK comedian Russell Brand, whom she met on the set of her latest film, Bedtime Stories (2008). Bedtime Stories is a Disney children's comedy starring Lucy Lawless, Guy Pearce, and Keri Russell and was released on Christmas 2008. As of January 2009, she is back with former on-off boyfriend, Topher Grace, and soon to star in an advertising campaign for Aussie clothing chain "Just Jeans".