City dominated the early stages of the game and Kevin De Bruyne almost opened the scoring with a fantastic free-kick from 25 yards out but the Belgian's fierce drive rattled off the cross bar.
City continued to pile on the pressure but Palace's defence held firm. Against the run of play, on loan striker Cenk Tosun found space from the a corner and headed past Ederson to give Palace the lead at half-time.
The Blues came out firing but it took until 82 minutes for an equaliser through Sergio Aguero. The Argentine was the hero again five minutes later when he headed home Benjamin Mendy's cross to give City the lead.
However, a late Fernandinho own goal saw Palace rescue a point.
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