The Buccaneers looked to be heading towards defeat on Saturday as they trailed Kaizer Chiefs 1-0 after Abia Nale had opened the scoring after just nine minutes.
However, Benni McCarthy found the back of the net six minutes into injury time to force a penalty shoot-out at the FNB Stadium, which the Buccaneers went on to win 5-4.
"At Orlando Pirates we say its not over until its over, the fighting spirit the players showed was pleasing to see because it shows that they (the players) have not lost that determination and will to win," Palacios told the club's official website.
"Even though they have won so many cups in the past two years, the players still show that they are hungry for success and as a coach I am very pleased about that."
The match marked Pirates' last piece of pre-season action, with the Soweto giants gearing up for their season-opening MTN8 clash against Bloemfontein Celtic on Friday evening
He added: "Although I am happy with this victory, the real work begins this week as we get ready for the start of the Top 8 against Bloemfontein Celtic. We need to get the season off on a good footing by winning the match. We cannot afford to lose as we are the defending champions."