The Terriers missed a big chance to move further away from the jaws of the relegation zone and their manager Wagner was disappointed with the overall performance of his players.
A first-half goal for James Tomkins gave the visitors the lead and with 63 minutes gone Luka Milivojevic doubled the lead to ensure all three points would be going back to Croydon.
Sloppy mistakes from set-plays cost Huddersfield
Both of the Eagles’ goals came from dead-ball situations, something which Wagner was disappointed with, but was keen to emphasise that Palace could’ve scored from a number of open play chances during the game.
Speaking to Sky Sports after full-time, he said: “We were never able to recirculate the ball, to dominate possession and if, like we did today, you lose possession too quickly and too easily, the distances are too big to close the gaps and to go into the challenges and the battles like we wanted to do."
"In the end, we conceded from two set plays in front of the goals, but they deserved it," he added.
"They had enough other opportunities I think. They deserved the result, even after scoring from set plays."
Town’s attitude never questioned
A key attribute of the squad assembled by Wagner is their willingness to battle for every ball and chase down lost causes, and despite the loss Wagner believed he still saw both of these qualities in his team.
"There is no doubt about the attitude or effort. They (the players) tried everything and they fought but in ball positions, we were not good enough and the distances were too big,” Wagner stated.
The 46-year-old manager, was as always, keen to move on to the next fixture as The Terriers face Newcastle United at St. James’ Park in another crucial relegation battle.
"The good thing is we know what we've done wrong and what our problem was so we can make it better and onto the next one."
More points dropped at home
After a frustrating 0-0 against 10-man Swansea City last weekend, Wagner would’ve hoped to pick up all three points this time around against another relegation rival.
The German coach accepted that taking just one point from these consecutive home games was not good enough.
He added: “nobody is happy after these two home games to only have one point, but this is part of the game."
"It's important how you manage defeats and disappointments. Today it was a disappointment for sure, but this is what we have to accept and it is something we have to work with.”
The International break has come at an ideal time for Huddersfield as it allows them to re-group and get ready for the next seven games that will decide their Premier League status.
Newcastle and Brighton and Hove Albion follow the break and Wagner will be looking for a much better return on points to guarantee Town's safety.
"It (the battle to avoid relegation) is anything but boring, it is exciting and of course, you have to do your own job which is the most important thing.
"In the past, we have done it - not today - and we will do it in the future as well," the Terriers boss concluded.