City who were looking to build on the momentum of Wednesday’s win over Nottingham Forest, conceded in the fifth minute with Palace’s first attack of the game.
The visitors lost possession in the centre of the pitch and Palace broke at pace with Will Hughes feeding the ball to Daniel Munoz who blasted the ball past Stefan Ortega.
Despite falling behind so early, City continued to dominate the game and they were rewarded in the 30th minute with Erling Haaland drawing them level, heading home a cross from Matheus Nunes.
Palace took the lead again after the restart through Maxence Lacroix who headed home a Will Hughes corner in the 55th minute. City found an answer in the 68th minute through Rico Lewis who found the top corner after a great ball from Bernardo Silva.
Lewis received his marching orders after a second yellow for a challenge on Chalobah, leaving City to play the rest of the game with 10 men.
The draw leaves City in fourth place with 27 points, eight behind leaders Liverpool who have a game in hand. They return to Champions League action in Italy as they fave Juventus on Wednesday.
