Inspector Nilesh Mainkar of Palghar Police Station said police received a message at around 9.40 am about a body hanging from a tree in Nandore Naka area.
The deceased was later identified as one Dil Bahadur Thapa (aged around 30), who worked as a watchman with Jyoti India Metal company, police said.
Police registered a case of accidental death and sent the body for post-mortem. Cause of the death will be known only after the post-mortem report is received, they said.