A hat-trick from Kevin Doyle ensured Reading came out on top of a thrilling encounter at the Madejski Stadium.
All three of the Irishman's goals came in the second half after James Harper reacted to Stephen Hunt's saved shot to put the hosts in front
Nick Carle's penalty put Palace back on level terms and they went in front as Tom Soares stabbed in from close range.
Doyle scored twice in a minute from inside the six yard box and a late header completed his hat-trick.
Reading manager Steve Coppell on Kevin Doyle's future: "We've had no contact from anyone for several weeks about him. "Why on earth would a Premier League club be interested in him now after one performance?
"If he was going to be desirable to anyone then they have had 10 weeks over the summer to get him. "If anyone buys someone in the last few days of the window then unless it's been set up for a few weeks - which isn't the case with him - then it smacks to me of a panic buy.
Crystal Palace manager Neil Warnock:"Kevin Doyle will never get an easier hat-trick than that.
"The marking was a disgrace from three corners and it's a good job that they sold Ibrahima Sonko to Stoke otherwise they could have had 10.
"But if you defend like that you'll get beaten by Bodmin and Saltash - never mind a team like Reading."
Reading: Hahnemann, Rosenior, Pearce, Ingimarsson, Armstrong, Kebe, Harper, Karacan, Stephen Hunt, Long (Noel Hunt 68), Doyle. Subs Not Used: Convey, Bikey, Federici, Kelly.
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