The Spaniard latched onto a poor clearance from Palace and volleyed home first time.
It was his 50th goal for the club and set the tone for a commanding display.
Manchester city completely dominated proceedings at the Ethihad with David Silva flagging off the goal feast as early as the 2nd minute of the match.
Player ratingsMan City: Willy Caballero: 7, Fernandinho: 7, Vincent Kompany: 8, Nicolas Otamendi: 8, Gael Clichy: 7, Yaya Toure: 8, Raheem Sterling: 8, Kevin De Bruyne: 9, David Silva: 9, Leroy Sane: 8, Gabriel Jesus: 7.
Kompany: We needed the big win!
Crystal Palace's manager (Big) Sam Allardyce will welcome Frenchman Yohan Cabaye in the lineup.
Palace would have been pleased to make it into half time with only a one-goal deficit, but their hopes of stealing anything from the game took a major blow shortly after the interval as City made as quick a start to the second half as they had in the first.
"So we went with a four and got better going forward, had a few counter-attacking chances, but our attacking play let us down as much as our defensive play".
His strike was Manchester City's fastest Premier League goal since February 2015. What a hit it was! But Palace did well to withstand the pressure and chances at the other end.
Mulayam camp ups ante: Aparna Yadav demands Akhileshs resignation as SP chief
Party sources said a Samajwadi Party split is imminent and there is a waiting game on as to who blinks first. Shivpal is also likely to meet senior leaders to tap in to discontent.
"It depends if you talk about emotions".
"Iheancho needs to leave Manchester City and he will find a better place to continue his younger career", he said.. "You close your eyes and swing!"
City's second arrived just four minutes into the second half, though, when Kompany hammered an effort into the top-right corner after being found by De Bruyne in space inside the Palace box. "We gifted them all five goals". The mood's not great because we are at that time in the season where we need to win games and it didn't happen on Sunday (at Boro).
Once Pep has the players he desires at his disposal, City will be a team to fear once again.
The Belgium ace added: "We've had a manager that has come in with a very specific vision of how he wanted the game to be played and I think we've had a team that has tried everything to implement that".
"We created enough chances". The most hard thing in football, basketball, tennis, in all the sports is to do it in the last moment.
Man United sit just outside the Premier League top four and the clash against Arsenal still represents a chance of getting back into the Champions League, which is why Mourinho will still have some importance on the clash.
"You can not forget that weeks ago Crystal Palace were able to win at Stamford Bridge and Anfield and they destroy Arsenal", Guardiola told a news conference. "We're somewhere down the line in doing it and I feel if we improve in those things we'll be a special team".