Dyshidrotic Eczema (Pompholyx): This condition is characterized by small, itchy blisters on the palms or soles, often accompanied by dry, cracked, and reddened skin. It is a common condition that matches the description provided.

Contact Dermatitis: This is a type of eczema triggered by contact with allergens or irritants, which could lead to blistering, redness, and dryness on the palms.
Psoriasis: Palmar psoriasis can cause dry, cracked skin and sometimes small blisters, although it more commonly presents with thickened skin and scales.
Eczema (Atopic Dermatitis): While more common in flexural areas, eczema can occur on the palms and may present with blisters, especially in acute phases.

Scabies: Although scabies typically causes burrows and intense itching, in some cases, especially in institutional outbreaks, it can present with vesicles or blisters, making it crucial not to miss due to its contagious nature.
Herpes Simplex: Herpetic whitlow is a painful infection of the finger or palm caused by herpes simplex virus, characterized by small, fluid-filled blisters. Missing this diagnosis could lead to inappropriate treatment and potential spread.
Secondary Syphilis: This condition can cause a wide range of skin manifestations, including palmoplantar lesions, which, although rare, could be deadly if left untreated due to the potential for neurological and cardiovascular complications.

Bullous Pemphigoid: An autoimmune disease that can cause large blisters, which might initially appear as smaller blisters. It's less common on the palms but should be considered in the differential due to its potential severity.
Palmoplantar Keratoderma: A group of rare genetic disorders characterized by thickening of the skin on the palms and soles, which might occasionally present with blisters or cracks.
Aquagenic Palmoplantar Keratoderma: A rare condition triggered by exposure to water, leading to whitish, translucent, or blisters-like lesions on the palms.