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The Reds were coasting to victory in south London at 3-0 up with 11 minutes left after goals from Joe Allen and two in two second-half minutes from strikers Daniel Sturridge and Luis Suarez.
The Uruguayan was equalling the Premier League record for a 38-game season with his 31st goal of the campaign.
But a Palace side safe from relegation, and with seemingly nothing to play for, turned the match on its head with Dwight Gayle scoring twice after Damien Delaney's 79th minute deflected shot brought Palace back into the match.
The draw did see Liverpool return to the top of the table but left them just one point clear of second-placed Manchester City.
But City have two games still to play compared to the Merseysiders' one.
And this result also kept alive third-placed Chelsea's title hopes.
