The Eagles' development side were on the wrong end of a five goal game on the Sussex coast as Brighton and Hove Albion recorded a 3-2 victory over Gary Issott's men on Monday night.
However it was the visitors who struck first after just seven minutes. A delightful mazy run by Sullay Kaikai saw him beat three players before slotting in Reise Allassani who prodded the ball past the onrushing Christian Walton.
Allassani then had the chance to score his and Palace's second when Tom Dallison brought down Kaikai but Walton managed to push away the spot-kick, and soon after Kaikai was the provider again as Michael Chambers headed narrowly wide.
Those missed chances proved costly as the Seagulls turned the game on its head by scoring twice in the final three minutes of the half. Firstly Craig Makail-Smith nodded down a deflected shot into the path of Brennan Dickenson who caught the ball sweetly to ram the ball past David Gregory.
And in stoppage time at the end of the first 45 a cross from the right was expertly headed back across goal and into the net by Glen Rea to completely alter Issott's half-time team talk.
Gregory pulled off a superb double save from two Rea attempts as the hosts pressed to seal the win, but Conor Dymond nearly pulled his side level again with a drilled shot from distance which forced Walton ito be at his best to turn the ball away.
But the decisive goal came on 70 minutes when Jesse Starkey's low shot was cleared off the line, but after Gregory had saved the rebound Jordan Maguire-Drew was on hand to tuck the loose ball away and established a two goal cushion.
But the Eagles rallied and ensured there would be a nervy ending to the game as Kaikai's low free-kick poorly cleared and Quade Taylor, with his back to goal, hooked the ball over his shoulder and managed to lob Walton to make it 3-2 with eight minutes to play.
However despite their best efforts in the closing stages Palace were unable to restore parity as they slipped to defeat against their arch-rivals.
Brighton: Walton, Deen, Rea, Dallison, Hunt, Monakana (Davis 68), Harris, Asmundsson, Starkey, Mackail-Smith (Maguire-Drew 50), Dickenson. Subs not used: Smith, Wiltshire, Muitt.
Palace: Gregory, Gordon, Croll (Jerome Williams 71), Boateng, Taylor, Chambers, G Sow (Berkley-Agyepong 78), Dymond, Gray (Tieku 71), Kaikai, Allassani. Subs not used: Gabsi, George.