It was a meeting between two of the form teams in the Championship as the Canaries under Glenn Roeder have moved steadily away from relegation trouble in recent weeks.
Republic of Ireland international Clinton Morrison was the Eagles' hero, scoring a second-half equaliser to bring his recent goal tally to nine in the last 11 matches.
The former Birmingham man's goal salvaged a point for Neil Warnock's side after Darel Russell had given the visitors the lead.
Palace started the match well and Morrison fired over the bar after being set up by James Scowcroft.
At the other end Palace goalkeeper Julian Speroni was forced to make a smart save to keep Lee Croft's 25-yard effort out.
The visitors took the lead in the ninth minute when Jon Otsemobor's long throw was headed on by Dion Dublin for Jamie Cureton to hook the ball across the six-yard box, where Russell slotted home.
Dublin almost doubled City's lead with a header that Speroni did well to keep out before lifting a 25-yard lob on to the roof of the net.
The visitors continued to create the better chances and almost grabbed a second goal at the start of the second half, when Croft beat Clint Hill and crossed for Cureton to head for goal only for Speroni to make another smart stop.
However, Palace equalised in the 50th minute when Ben Watson's free-kick found the unmarked Morrison, who did well to arrow his back-header into the bottom corner of the net.
Both sides had chances to win the game with Morrison almost adding to his impressive recent goal record with a shot that was turned over his own crossbar by Jason Shackell.
At the other end Dublin fired a low cross over the bar, but in the end a draw was a far result between two evenly-matched teams.