Caretaker manager Mark Lillis masterminded Huddersfield's first Championship win in 13 matches and said: “It's all about putting confidence back into the players.”
Lillis, in joint-temporary charge with development coach Steve Eyre while Town find a replacement for the sacked Simon Grayson, halted the club's slide down the table with a vital three points.
Lillis said: “I have been in charge about a week now and it was all about getting in amongst the players. If you get the respect of the players you have a chance.”
Striker James Vaughan scored his fifth Town goal with a smart finish in the 65th minute and Lillis said: “That will do him the world of good.”
A victory would have lifted Palace to second in the table but Town battled hard, with captain Peter Clarke immense at the heart of the defence. Adam Clayton's through-ball set up Vaughan, who had two loan spells at Selhurst Park, for a clever finish.
At the other end Yannick Bolasie proved a big threat and almost grabbed an equaliser in the fifth minute of stoppage time – but Alex Smithies produced a superb save.
There were reports tempers became heated in the tunnel after the game and the Palace manager, Ian Holloway, refused media interviews. Lillis said: “We are two passionate managers. There were a few tackles around.”