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City are searching for back-to-back league victories after ending a four-match winless run by beating Luton Town 1-0 last weekend.
And the champions dominated the first half against Palace, who have enjoyed success at the Etihad in recent seasons.
Jack Grealish scored for the third consecutive Premier League game for the first time in his career to hand City a deserved lead on 24 minutes.
But Guardiola's defence was split open under five minutes before the half-time whistle as Jean-Philippe Mateta found a way in behind.
Ederson rushed out of his box to close the 26-year-old down, sliding in but missing the ball and taking him out.
The Brazilian was fortunate to have a defender covering his goal, which meant referee Paul Tierney showed him a yellow card rather than a red one.
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