Larkin lit up the Barclays Women's Super League 2 this season, scoring eight goals and getting three assists.
The 21-year-old Ireland international was recently shortlisted for the WSL2 Rising Star award, and has proven herself to be an essential part of Palace's formidable attack.
Manager Jo Potter said: "Abbie was fantastic this season, and we're delighted that she has committed her future here.
"She’s a massive talent who's only going to get better in this environment."
Upon signing her new contract, Larkin said: "This club has given me memories I'll never forget, and it's not over yet."
2026/27 Palace Women's Season Tickets are now on general sale!
Secure your seat today to ensure you're there at every home game to watch Abbie Larkin and the squad take on the absolute best of the WSL.