Hill was called into action to make a flying save to deny a long-range effort from Mukasa, while also reacting well to save Heskey’s attempt.
With 20 minutes remaining, Derry saw a shot blocked after a good ball in from Danaher, straight down the other end Hill managed to make a strong save to deny Matthew Warhurst’s effort on a breakaway.
There were just over eight minutes remaining when Palace’s hearts were broken. Second-half substitute Dan Batty managed to work some space inside the box and pick out the bottom left corner, past an outstretched hand from Hill.
The young Eagles pushed for an equaliser in the time that remained, but it wasn’t to be. Their FA Youth Cup journey ended at the first hurdle at the hands of the holders.
A valiant effort nonetheless, though the side will now focus their attention on finishing as high up the U18 Premier League South as possible.
**City:** Hudson, Henderson-Hall (Headly, 72), Noble, Mfuni, Braithwaite, Fapetu, McAidoo (Fletcher, 87), Gorman (Batty, 67), Warhurst, Mukasa, R. Heskey.
Subs not used: Grigg (GK), T. Samba, Miles, Courtman.
**Palace:** Hill (GK), King, Benamar, Walker-Smith, Jemide, Danaher (Casey, 83), Whyte, Adams-Collman, Henry (Drakes-Thomas, 88), Williams, Derry.
Subs not used: Mason (GK), Okoli, Osei, Cowin, Somade.