The Young Eagles had given everything in pursuit of the victory required to top Group C and secure a quarter-final place.
Raihaan Anderson opened the scoring before Villa were reduced to 10 men in the first half, giving Palace a platform to push for the decisive result.
The hosts dominated large spells after the interval and came agonisingly close to finding a winner on several occasions.
However, they were ultimately punished in stoppage time, as Villa struck on the counter-attack to bring Palace's title defence to an end at the group stage.

