Against the run of possession, Leicester took a 2-0 lead through goals from Robert Huth and Jamie Vardy. A quick response from Yohan Cabaye swung the momentum back into the hands of the hosts, who went on to find an equaliser through Christian Benteke.
Neither side could find a late winner after providing the crowd with an entertaining clash.
Leicester defence holds strong
Leicester started strongly after their 1-0 loss at Atletico Madrid in midweek. Huth came up for an early long throw-in, and the German towered above everyone to head home giving Palace an early 1-0 lead.
Despite leading, the current Premier League holders were on the back foot for much of the first half. Huth was protecting the lead he gave his side with plenty of important blocks.
Even with all their possession, Leicester's deep setup was frustrating Palace. Sam Allardyce's side were unable to exploit the pace of their tricky wingers Wilfried Zaha and Andros Townsend.
Shortly after a weak penalty appeal from Palace, Leicester doubled their lead through Vardy early into the second half. The England international was on the end of a scintillating Leicester counter-attack, racing away from ex-teammate Jeffrey Schlupp to then cut back onto his left foot and place it into the far bottom corner. Wayne Hennessey could only get finger-tips to the well struck shot, helping it into the back of the net.
Palace fight back
The hosts needed a quick reply and that's exactly what they provided. Schlupp's deflected efforted fell into the path of Cabaye for the Frenchman to finish low past Kasper Schmeichel. His second goal in a week put his side right back into the game.
Palace continued the offensive assault, coming close to scoring through Zaha, as they looked for an equaliser.
On the turn of the 70th minute, Allardyce's side had their equaliser. Townsend played an absolute teaser of a cross into the Leicester penalty area, and Benteke rose high to head the ball into the back of the net.
In the last 20 minutes, both sides came close to finding a winner as they battled for an potentially important three points. Schmeichel did well to prevent Benteke from scoring a brace in just two minutes with a fine save.
Leonardo Ulloa fired just wide after the visitors caused more trouble for the Palace defence with yet another long throw-in. Just before the final whistle, Craig Shakespeare's side came close to taking all three points back to Leicester. A poor clearance by Patrick van Aanholt fell to the feet of Danny Drinkwater, but he couldn't find the target with his effort.
Where does this leave both sides?
After an entertaining affair, the points were fairly shared. Both teams' survival chances are far stronger than they were just under a month ago. Palace's recent form has placed in 15th, seven points ahead of 18th-placed Swansea City and all with a game in hand.
Leicester continue to pick up points under the new leadership of Shakespeare. They now sit in 12th-place with 37 points and also have a game in hand over their relegation rivals.