Once again, Palace came back to score three times against Liverpool but this time they clinched all three points as they stunned the Reds with a fine display at Selhurst Park.
After Rickie Lambert had put the visitors in front in the second minute things looked bleak for Palace but they rallied and Dwight Gayle once again proved to be the Merseysiders' nemesis as he pulled his side level on 15 minutes.
Late on in the second half Joe Ledley then scored to hand his side a lead, and the win was sealed when Mile Jedinak dispatched a fine free kick two minutes later to secure Neil Warnock's men's first win in six games.
However they suffered a horrendous start when they fell behind just 90 seconds into the game. With the first attack of the match, Adam Lallana played a fantastic ball over the top of the Eagles' defence which his former Southampton team-mate Lambert latched onto, took a touch and rolled the ball past Julian Speroni to put his side seemingly in control.
Despite the worst possible beginning to the game, Palace regrouped and looking to make amends against his former club, Martin Kelly had the hosts' first attempt when he let fly from 25 yards out but blazed the attempt well over, but in the 16th minute they did recover to restore parity.
Ledley found Yannick Bolasie 30 yards from goal and the winger took a touch before seeing a low smash beat Simon Mignolet all ends up but it thumped off the base of the post, however Gayle was perfectly placed to slide in and to bundle home the rebound - his fourth goal in three outings against Liverpool.
That gave Palace huge fillip and Bolasie was looking threatening, and from the edge of the area he tested Mignolet with another stinging shot that was arrowing into the bottom corner which the Belgian keeper did well to push away for a corner, but enjoying a rare start for the Reds in place of the injured Daniel Sturridge and Mario Balotelli, Lambert then met a good cross by Joe Allen but nodded his back post header wide.
Warnock was forced into a defensive reshuffle 10 minutes before the break when Damien Delaney came off with a calf problem, and soon after Steven Gerrard was lining up a trademark blast but smashed the ball well over the top.
As he did in the corresponding fixture last season Bolasie was having a stormer and gave Liverpool's defence problem after problem, and after defending a corner he dribbled the ball 50 yards before playing a one-two with Jason Puncheon on the edge of the area but Martin Skrtel did well to block his effort, and in the half's final attack he saw a shot from a tight angle drift into the Whitehorse Lane end.
The second half continued in much the same vein with the Reds struggling to cause Speroni any problems in the Eagles goal for the first 25 minutes, but there was danger when a mazy run from Philippe Coutinho allowed Raheem Sterling the chance to hook the ball into Javier Manquillo's path but the right-back got his shot horribly wrong as it trickled out for a throw.
But with 13 minutes to go the Eagles edged ahead for the first time. Man of the match Bolasie picked the ball up on the right and oozing with confidence delivered a brilliant piece of skill that saw him the flick the ball over the head of Dejan Lovren, and then he centred the ball for Ledley who was waiting on the penalty spot to drill the ball between Mignolet's legs and score his first goal since April.
And then two minutes later the Palace fans were in dreamland as Gayle won a free-kick after Skrtel pulled his shirt 30 yards from goal and Jedinak stepped up to bend the ball into the top corner, leaving Mignolet no chance and put the result to bed.
Unlike Palace last season Liverpool were unable to come back as Gerrard saw a late free-kick whistle over and the hosts held on to pick up only their second-ever Premier League victory against the Anfield side.
Palace: Speroni, Kelly, Dann, Delaney (Hangeland 36), Ward, Jedinak, Ledley, Puncheon (McArthur 76), Bolasie (Bannan 86), Chamakh, Gayle. Subs: Hennessey, Zaha, Campbell, Johnson.
Liverpool: Mignolet, Johnson, Lovren, Skrtel, Manquillo, Allen (Can 74), Gerrard, Lallana (Borini 72), Coutinho, Sterling, Lambert. Subs: Jones, Toure, Moreno, Leiva, Markovic.