The Championship hosts seemed to be on their way to the third round of the competition for the first time since 2007 when on-loan Wolves midfielder Luke Cundle scored with a magnificent curling shot in the opening minute of the second period to put them 2-0 up.
New Zealand international striker Ben Waine had given the Pilgrims the lead as early as the sixth minute of the match and they were very good value for their two-goal lead when Cundle hit the target.
However, a triple substitution by Palace manager Roy Hodgson completely transformed the game, with England international Eberechi Eze in particular showing his outstanding attacking quality.
Odsonne Edouard scored the first of three goals in a devastating five minute spell, before French striker Jean-Philippe Mateta netted twice to put the south London side 3-2 ahead by the 62nd minute.
Mateta went on to complete his hat-trick in the 84th minute as Palace progressed to round three but it had been a thrilling cup tie in front of a crowd of close to 16,000 at a packed Home Park.
The Pilgrims deserve a lot of credit for causing their top flight opponents so many problems until Hodgson's decisive intervention.
Argyle's starting line-up showed nine changes from the 2-1 Championship defeat away to Birmingham City, with defenders Kaine KeslerHayden and Dan Scarr the two players who retained their places.
Julio Pleguezuelo captained the Pilgrims, as he had done in the 2-0 home first round victory over Leyton Orient three weeks earlier, with Joe Edwards named among the substitutes.Callum Burton was Argyle's goalkeeper as he took over from Conor Hazard, who had been called up by Northern Ireland earlier in the day for two Euro 2024 qualifiers next month.
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