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The result lifted Palace above Everton in the Premier League standings as they moved up two places to 12th.
Chelsea lead the table on 29 points, with City three points behind and Liverpool one further back in third.
Chelsea manager Thomas Tuchel had called on his attacking players to step up after injuries to striker Romelu Lukaku and Timo Werner.
Everton had a goal ruled out for offside by VAR after Townsend cancelled out Martial's opener.
The 30-year-old midfielder's future at Everton looked uncertain after they appointed manager Rafa Benitez to replace Carlo Ancelotti this season.
Chelsea beat Aston Villa 3-0 for their 600th Premier League victory to move joint top of the standings alongside Manchester United.
Everton Ribeiro got his second goal in two games to help Brazil on their way to a 2-0 win over Peru in another World Cup qualifier.
Five-time world champions Brazil have 21 points, six more than Argentina in second place.
Manchester City's record-signing Jack Grealish scored his first goal for the club with a 5-0 victory on home ground.
A Chelsea statement did not mention the agreed transfer fee, but media reports say the deal is worth a club record 97.5 million pounds ($134.7 million).