The Citizens were held by Patrick Vieira's side despite dominating proceedings at Selhurst Park.
Nevertheless, the draw leaves them four points above title-challengers Liverpool with just nine games to go - ten for the Reds.
Man City manager Pep Guardiola didn't make a single change during the match, something the Spaniard was questioned about in his post-match interview.
Speaking to Sky Sports, he said: "I thought a lot about making changes but they were playing well. The guys in the side had the ability to score, I think they were playing good. But we didn't score. The reason is Crystal Palace.
"We played a good game and created a lot of chances but couldn't convert. Sometimes it happens.
"The way we played was amazing, in a difficult stadium with the grass not perfect."
Guardiola was also asked about the impact this result has on the title race.
The 51-year-old added: "There are many games still to play. We have to win a lot but the way we played, (I have) no regrets about the team. I would prefer to have won, of course, but we played well."
Manchester City have two more away games before returning to the Etihad for a potentially title deciding clash against Liverpool.
However, both sides will turn their focus to the FA Cup next weekend as City travel to Southampton and the Reds face Nottingham Forest.