Scott Barron scored the goal for Town following good work by Shefki Kuqi on nine minutes. Earlier Palace had took the lead through Dougie Freedman who saw his shot go in off the far post.
The Scottish striker who was a danger throughout then sealed the win for Palace with just over five minutes remaining with a good finish giving Town keeper Shane Supple no chance.
Of the involved first teamers, Shefki Kuqi looked sharp and worked hard throughout whilst Fabian Wilnis coped well in an unfamiliar left back position. Pablo Counago had a fairly quiet game, but did have time to show some nice touches to create a chance that went just wide.
Speaking of the defeat, reserve team boss Steve McCall told the Official Club Website: "I was very pleased with the performance and we deserved to get something out of the game. Fabian and Shefki did very well and I was I impressed with Shane in goal.
"Pablo had a quieter match but showed some good touches and overall there was some encouraging signs from many of the players."