We present the stellar main-sequence luminosity function (LF) of the disrupted, low-mass, low-concentration globular cluster Palomar 5 and its well-defined tidal tails, which emanate from the cluster as a result of its tidal interaction with the Milky Way. The results of our deep (B ~ 24.5) wide-field photometry unequivocally indicate that preferentially fainter stars were removed from the cluster so that the LF of the cluster's main body exhibits a significant degree of flattening compared with other globular clusters. There is clear evidence of mass segregation, which is reflected in a radial variation of the LFs. The LF of the tidal tails is distinctly enhanced with faint, low-mass stars. Pal 5 exhibits a binary main sequence, and we estimate a photometric binary frequency of roughly 10%. The binaries also show evidence of mass segregation, with more massive binary systems being more strongly concentrated toward the cluster center.