Palace have been FA Cup finalists twice and on both occasions they finished runners-up to Manchester United in 1990 and 2016. The club did have success in a Wembley final in 1991, when they beat Everton to win the Full Members Cup. Palace enjoyed their best ever top flight season in 1990–91, when the club challenged for the league title, eventually finishing in third place in the top division, their highest league position to date. The club were denied a place in Europe at the end of that season due to the partial UEFA ban on English clubs caused by the Heysel Stadium disaster. Palace became founder members of the Premier League in 1992. The club have also suffered the misfortune of holding two Premier League records for relegation, having been relegated in the 1992–93 season, after achieving 49 points which is still the highest number of points for a relegated Premier League club, and in 1994–95 Palace became the only team ever to be relegated from the Premier League after finishing fourth from bottom due to the Premier League being reduced for the following season. Palace have been second tier champions twice and hold the record for the most play-off wins for promotion to the top flight, winning the final four times.

In 1973, the club changed its original nickname from the Glaziers to the Eagles and introduced the red-and-blue vertical stripes now associated with the club. The club had previously played in claret and blue colours. Palace have rivalries with Brighton & Hove Albion, with whom they contest the M23 derby, and fellow South London clubs Millwall and Charlton Athletic.