A fine strike from Matt Phillips eased 10-man Blackpool's relegation fears and ruined Crystal Palace boss Ian Holloway's return to Bloomfield Road.
Blackpool midfielder Barry Ferguson was sent off three minutes before half-time for a second bookable offence.
Palace took control but could not turn possession into goals as Glenn Murray and Wilfried Zaha both wasted chances.
With five minutes remaining, Phillips curled a shot past Julian Speroni to inflict Palace's third straight defeat.
A win would have taken Palace to within three points of second-placed Hull, but instead their worrying late-season slump continued.
Crystal Palace's slump
- Palace have conceded eight goals without reply in losing their last three games
- It is their worst run of form since losing the opening three games of this league campaign
The victory moves Blackpool up to 15th, but they are still only three points clear of the relegation zone.
Palace were reliant on Speroni in the opening exchanges as he twice denied home striker Nathan Delfouneso.
But the hosts were rocked three minutes before the break when Ferguson was shown a second yellow card for a foul on Yannick Bolasie.
Murray had Palace's first chance of the second half, but he could not make a firm contact with his header from Jonathan Parr's cross.
Zaha then drifted a ball in towards Murray, who fired into the side-netting from a narrow angle.
Palace were made to pay for wasting so many chances as Phillips collected the ball and looped a 20-yard effort home to clinch Blackpool's first home win under Paul Ince.
Blackpool manager Paul Ince on Barry Ferguson's sending off:
"I felt it was a harsh decision. I felt the first yellow card was right but the second one, [Yannick] Bolasie has knocked it 20 yards past him and is never going to get it.
"He made a meal of it. You need to show some common sense. The game's getting too soft. I felt the referee got that badly wrong.
"We've got a great bunch of lads and they dug in and got their just deserts as far as I'm concerned.
Crystal Palace manger Ian Holloway:
"We're not making things happen for ourselves. It is really important at this time of the season that we all stick together.
"It's the worst run we've had since the start of the season and it's the wrong time to do it. We've just got to dust ourselves off, get up and get on with it."
Live Text Commentary
Full Time The final whistle goes and the game is over.90:00 +3:41
Wilfried Zaha produces a cross, clearance by Isaiah Osbourne. A cross is delivered by Jonathan Williams, clearance made by Kirk Broadfoot.90:00 +2:24
Unfair challenge on Yannick Bolasie by Isaiah Osbourne results in a free kick. Andre Moritz delivers the ball from the free kick left-footed from right wing, clearance by Matt Derbyshire.90:00 +1:29
Matt Derbyshire has an effort at goal from outside the penalty area which goes wide right of the goal.88:24 Substitution
Substitution Neal Eardley joins the action as a substitute, replacing Nathan Delfouneso.88:24 Substitution
Substitution Matt Derbyshire joins the action as a substitute, replacing Tom Ince.88:24 Substitution
Substitution Aaron Wilbraham on for Ashley Richards.87:14
Yannick Bolasie delivers the ball, Kirk Broadfoot makes a clearance.86:54
The ball is swung over by Wilfried Zaha, Stephen Crainey manages to make a clearance.86:38
Centre by Jonathan Parr, Alex Baptiste gets a block in.85:58 Substitution
Substitution Ludovic Sylvestre leaves the field to be replaced by Isaiah Osbourne.84:47
Assist by Tom Ince.84:47 Goal scored
Goal! - Matt Phillips - Blackpool 1 - 0 C Palace Matt Phillips finds the net with a goal from outside the penalty box to the top left corner of the goal. Blackpool 1-0 Crystal Palace.82:23
Effort from inside the area by Matt Phillips misses to the right of the target.79:58
The ball is swung over by Wilfried Zaha, Alex Baptiste gets a block in. Corner taken left-footed by Andre Moritz from the left by-line to the near post, clearance made by Alex Baptiste. Corner taken left-footed by Andre Moritz, clearance made by Gary MacKenzie. Inswinging corner taken by Andre Moritz, Matt Gilks makes a save.79:18
Andre Moritz delivers the ball, Glenn Murray produces a right-footed shot from deep inside the six-yard box which goes wide of the right-hand upright.73:29
Ashley Richards delivers the ball, Matt Phillips gets a block in. Handball by Matt Phillips. Andre Moritz delivers the ball from the free kick left-footed from right wing, Chris Basham manages to make a clearance. Yannick Bolasie takes a shot. Blocked by Chris Basham. The assistant referee flags for offside against Tom Ince. Mile Jedinak takes the indirect free kick.71:32
Free kick taken by Matt Gilks.71:32 Substitution
Substitution (Crystal Palace) makes a substitution, with Andre Moritz coming on for Kagisho Dikgacoi.71:32 Substitution
Substitution Jonathan Williams joins the action as a substitute, replacing Stephen Dobbie.
The assistant referee signals for offside against Glenn Murray.69:54
Matt Phillips delivers the ball, clearance by Peter Ramage.68:47
The referee blows for offside against Matt Phillips. Indirect free kick taken by Damien Delaney.66:59
Inswinging corner taken by Tom Ince.62:06
Tom Ince takes a inswinging corner to the near post.61:22
Wilfried Zaha takes a shot. Save by Matt Gilks.57:15
Direct free kick taken by Alex Baptiste. Wilfried Zaha concedes a free kick for a foul on Chris Basham. Free kick taken by Matt Gilks. Free kick awarded for an unfair challenge on Gary MacKenzie by Glenn Murray. Matt Gilks takes the free kick.57:15 Booking
Booking Jonathan Parr is cautioned by the ref for unsporting behaviour.57:03
Free kick awarded for an unfair challenge on Tom Ince by Jonathan Parr.55:06
The ball is delivered by Jonathan Parr, Glenn Murray takes a shot. Save by Matt Gilks.53:42
Mile Jedinak takes a shot. Kirk Broadfoot gets a block in. The ball is swung over by Yannick Bolasie, save by Matt Gilks.52:58
The ball is crossed by Wilfried Zaha, clearance made by Stephen Crainey.49:04
Yannick Bolasie delivers the ball, Stephen Crainey makes a clearance.47:11
Centre by Damien Delaney.46:57
Chris Basham concedes a free kick for a foul on Stephen Dobbie. Free kick taken by Mile Jedinak.45:01
The second half begins.45:00 +2:03 Half time
Half Time The ref blows to end the first period.44:07
Tom Ince sends in a cross.41:09
Mile Jedinak takes the free kick. Stephen Dobbie has an effort at goal from outside the area which goes wide right of the goal.41:09 Dismissal
Dismissal The referee shows Barry Ferguson a red card for second bookable offence.40:58
Foul by Barry Ferguson on Yannick Bolasie, free kick awarded.40:26
Glenn Murray gives away a free kick for an unfair challenge on Kirk Broadfoot. Free kick taken by Barry Ferguson.39:10
Free kick awarded for an unfair challenge on Wilfried Zaha by Stephen Crainey. Direct free kick taken by Mile Jedinak.38:57
The ball is crossed by Matt Phillips, clearance made by Peter Ramage.35:52
Ashley Richards delivers the ball.34:26
A cross is delivered by Stephen Crainey, Nathan Delfouneso takes a shot. Julian Speroni makes a fantastic save. Alex Baptiste delivers the ball.31:06
Free kick taken by Mile Jedinak.31:06 Booking
Booking Barry Ferguson goes into the referee's book for unsporting behaviour.30:54
Free kick awarded for an unfair challenge on Kagisho Dikgacoi by Barry Ferguson.29:07
Stephen Crainey delivers the ball, Jonathan Parr makes a clearance.27:59
A cross is delivered by Matt Phillips.26:52
Free kick awarded for an unfair challenge on Glenn Murray by Kirk Broadfoot. Direct free kick taken by Stephen Dobbie.25:34
Chris Basham crosses the ball, clearance by Damien Delaney.25:23
Stephen Crainey delivers the ball, Jonathan Parr makes a clearance.23:03
Unfair challenge on Jonathan Parr by Chris Basham results in a free kick. Free kick taken by Julian Speroni.20:42
The ball is sent over by Yannick Bolasie.20:08
Stephen Dobbie takes a short corner.17:39
Wilfried Zaha takes a shot. Save by Matt Gilks. Outswinging corner taken from the right by-line by Stephen Dobbie, Effort from deep inside the area by Damien Delaney misses to the left of the target.16:57
Alex Baptiste gives away a free kick for an unfair challenge on Wilfried Zaha. Ashley Richards takes the direct free kick.15:13
The ball is swung over by Tom Ince.14:01
Ashley Richards fouled by Tom Ince, the ref awards a free kick. Ashley Richards takes the free kick.13:04
Corner taken by Stephen Dobbie, clearance by Stephen Crainey.12:46
A cross is delivered by Wilfried Zaha, Ludovic Sylvestre makes a clearance.11:44
Foul by Gary MacKenzie on Glenn Murray, free kick awarded. The free kick is swung in right-footed by Stephen Dobbie, clearance by Ludovic Sylvestre. Short corner taken by Stephen Dobbie.9:08
Matt Phillips produces a mishit right-footed shot from deep inside the penalty area which goes wide of the left-hand post.8:35
Nathan Delfouneso takes a shot. Save made by Julian Speroni.6:05
The ball is crossed by Yannick Bolasie, Kirk Broadfoot manages to make a clearance.3:30
Ludovic Sylvestre challenges Wilfried Zaha unfairly and gives away a free kick. Stephen Dobbie takes the free kick.0:14
Free kick awarded for a foul by Yannick Bolasie on Alex Baptiste. Matt Gilks takes the free kick.0:00
The match gets underway.
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