McCarthy is ruled out after recently aggravating an ongoing shoulder problem.
The Irish defender had surgery last month and is not expected to return for the Eagles until March.
Full-back Butterfield is set to miss out with a muscle strain.
The 30-year-old picked up the injury during the 2-0 defeat to Sheffield United two weeks ago and subsequently missed last Saturday's draw with Barnsley.
Meanwhile, former Derby defender Claude Davis is walking a disciplinary tightrope heading into the game, as he has picked up four yellow cards this season and one more will result in a one-match suspension.
Ipswich manager Roy Keane will be without key players Jon Walters, Grant Leadbitter and Stern John.
Walters and Leadbitter are both suspended after picking up their fifth yellow cards of the season in the 3-1 win over Blackpool on December 12 and will serve one-match bans after last weekend's game at Scunthorpe was called off.
Striker John is on loan from Palace and is ineligible play against the Eagles as part of the loan agreement between the two clubs.
Defender Alex Bruce (groin) and winger Lee Martin (ankle) could return as Keane's side look to extend their unbeaten run to 11 games.
David Norris is close to being involved for the first time since injuring his knee in the opening weekend of the season, while winger Luciano Civelli could be back in the new year from a knee injury of his own.
Goalkeeper Richard Wright remains sidelined with a serious knee injury.
Sporting Life