Neil Warnock was not happy with either the way that Leicester got a penalty in the 2nd half of the defeat or the way Paul Gallacher was allowed to be in a position to convert Julian Speroni's save.
Referee Roger East gave the spot kick after a foul by Nick Carle and Gallacher was first to the ball as it came back into play.
"It was a Sunday league tackle for the penalty but the lad who scored the goal was three yards inside the box when it was taken.
"Rules are rules. We've heard all week about a beach ball and then they allow a goal like that. He brushed past the referee on his way into the area so he can't say he hasn't seen it."
This defeat ended the unbeaten run and the squad now turn to Saturday's match against Nottingham Forest.
"We came with a positive attitude but we lack quality up front. We haven't got the players to excite anyone in attack. We have got Forest to worry about now. They've just won five in a row so that will be another very tough game."
The full after match press conference will be available on PALACE PLAYER.