Although it took them most of the first half to get the opener, once Ahmed Musa scored, there were no looking back for the Foxes, who went 3-0 ahead thanks to further strikes from Shinji Okazaki and Christian Fuchs. Yohan Cabaye scored a late equaliser for Alan Pardew's men.
Open, exciting first half
The most clear-cut chance of the game came after just 90 seconds, with two huge errors. Palace goalkeeper Steve Mandanda wasn't under much pressure from Islam Slimani, but sent his clearance straight to Shinji Okazaki. With time on the edge of the area and a 'keeper off his line, Okazaki logically went for the chip, getting it horribly wrong and sending the the ball well wide of the goal.
Yohan Cabaye, lining up in Palace's midfield three, looked to swing the early momentum back in his sides' favour, sending an effort wide from distance.
The away side did hit the crossbar after 13 minutes, unsurprisingly through Christian Benteke. After a Wilfried Zaha run was blocked, the ball broke for Martin Kelly, his cross nicely angled to the Belgian, Kasper Schmeichel well beaten as the ball rebounded off the woodwork.
Riyad Mahrez, who grabbed a winning Champions League goal in midweek, showed his ability in dancing past two challenges down the right, but neither Slimani or Okazaki could get on the end of his low ball in.
Okazaki did get onto the end of Mahrez's next effort, the Algerian angling a left-footed ball in towards the back post, his teammate getting to it with his head, an effort which went over the bar.
Musa breaks deadlock before Foxes run riot
The deadlock was eventually broken with just a few minutes left in the first half, Ahmed Musa scoring his first competitive goal for the Foxes. Starting the move himself, Musa latched back onto the ball after Slimani and Okazaki were involved, before leaving Mandanda flat-footed by lashing a powerful effort into the corner of the net.
Once that goal went in, Leicester firmly took control, and doubled their lead around the hour mark shortly after Slimani missed with his head, Okazaki making up for his earlier miss with a goal.
Danny Drinkwater's low cross towards Slimani was intercepted by Delaney, who could only divert the ball into Okazaki's path, the striker drilling the ball into the bottom corner of Mandanda's net.
Palace did have chances to come back into the game whilst the score was only 2-0, Zaha forcing Schmeichel into action after cutting inside, whilst Christian Benteke had a header from a corner swept off the line by Danny Simpson.
However, there was no coming back for the Eagles after Fuchs made it 3-0, with a simply stunning finish. Benteke got up to head Mahrez's corner out of the area, the ball falling to Fuchs who lashed a volley into the bottom corner of the net.
It really wasn't Benteke's day, and Schmeichel closed him down well to prevent the Belgian scoring a consolation goal, although Cabaye would pull one back with five minutes to go. Zaha was involved again, turning Fuchs before Cabaye converted his cross.