A goal apiece from Palace's centre-backs ensured the Eagles picked up their first ever win at the King Power Stadium and extend their unbeaten run to 10 games as they stayed fourth in the Championship table.
Lennie Lawrence and Curtis Fleming were once again at the helm and first half goals from Damien Delaney and Peter Ramage ensured a positive end to a tumultuous week at Selhurst Park, despite a late consolation for the Foxes through Andy King.
Wilfried Zaha returned to the Eagles side and the livewire winger showed no signs of rustiness as he created the game's opening chance in the first minute, but Glenn Murray couldn't convert his cross.
The Foxes began to threaten and Julian Speroni was tested twice in quick succession as he saved from David Nugent and Anthony Knockaert before King connected with a header which just crept over the crossbar after a quarter of an hour.
From then on the first half was one-way traffic as the Eagles stepped up a gear. Firstly, Jonathan Parr forced Kasper Schmeichel into a diving save after a Palace counter-attack, but the lead was theirs after 23 minutes.
Owen Garvan swung over a deep corner which Schmeichel came to collect but he spilt the ball into the path of Delaney, and the in-form defender lashed the ball home for his third goal in four games.
The chances kept coming and Yannick Bolasie was next to try his luck and he missed the target by inches from 30 yards with Schmeichel well beaten, but the winger soon created the second goal on 26 minutes when his corner was met with a bullet header from Ramage, who netted his first goal for the club.
With Palace in control, Leicester began to push forward and King nearly found the bottom corner of Speroni's goal but the Argentinian produced heroics to claw the ball away and then Owen Garvan headed off the line from a Foxes corner to ensure his side took their two goal lead into the break.
Leicester came out in the second 45 intent on reducing the deficit and Nugent shot straight at Speroni before Varney headed over after a spot of head tennis in the area. Before another goalline clearance from Garvan kept the lead at two.
In a grandstand finish, Palace had a great chance to wrap the game up four minutes from time but Bolasie shot straight at Schmeichel after good work from Zaha and Dikgacoi.
There was to be a nervous end to the game for the travelling fans when King headed in Ben Marshall's cross in injury time, but the final chance fell to Bolasie who dispossessed Schmeichel but his tame finish ultimately didn't matter as the Eagles held on to take all three points back to Selhurst.
Leicester: Schmeichel, De Laet, Konchesky, Drinkwater (Marshall 62), Morgan, Whitbread, Vardy, King, Dyer (James 32), Knockhaert (Schlupp 76), Nugent.
Subs not used: Logan, Waghorn , Moore, Futacs.
Crystal Palace: Speroni, Ward, Parr, Bolasie, Dikgacoi, Garvan, Jedinak, Zaha (Moxey 90), Murray (Wilbraham 88), Delaney, Ramage.
Subs not used: Blake, Easter, O'Keefe, Moritz, Price
Referee: Mr A Haines Attendance: 23,646