Riad Balić’s 51st-minute strike, after being gifted the ball by Jaydee Canvot just outside the edge of the Palace box, mean the Eagles now have one win and one loss from their two group games so far.
Going into the match, Palace boss Oliver Glasner made four changes to the team which started against Dynamo Kyiv in their 2-0 win in Lublin, Poland at the beginning of the month.
Croatian international Borna Sosa was suspended following his red card in Poland and was replaced by Tyrick Mitchell at left wing back, while Jefferson Lerma came in for Adam Wharton in his defensive midfield role. Ismaïla Sarr replaced Daichi Kamada and Chris Richards was replaced by Jaydee Canvot in the back three, the French U19 international making his first European start and just his second one for the SE25 side.
The Selhurst Park faithful, keen to witness history, were left frustrated in a first half which saw Glasner’s side have more than two-thirds of possession but do little with it.
Ismaila Sarr had one of the first clear chances, the ball flicked on by Canvot from a Lerma throw in the 19th minute, but the Senegalese international could not find his feet and his scuffed shot was dealt with by the Larnaca defence.
A few minutes later Daniel Munoz’s cross was pushed out by goalkeeper Zlatan Alomerovic only to land at the feet of Jean-Philippe Mateta, but the French striker could only miss-hit and strike down as the ball bounced back up and hit the crossbar.
Additional time saw two more chances for Mateta go wide – first, his shot going wide after Yeremy Pino’s ball in, and then a Michael Hughes cross was headed wide.
The goalmouth action continued early in the second half as a Maxence Lacroix header went wide from another Hughes cross, but moments later the home side only had themselves to blame when they went behind.
Completely in control of the game, Palace goalkeeper Dean Henderson passed it out to Canvot midway inside the Eagles half. After being quickly closed down by two onrushing Larnaca players, he blindly passed it in the direction of Maxence Lacroix only for AEK’s Riad Balić to intercept and slot pass Henderson from the edge of the box.
That goal was the first Glasner’s side had conceded in their four UEFA Conference League games – the two group games so far and two qualification games against Fredrikstad.
With the crowd chanting for Adam Wharton, the chances kept coming, Munoz hesitating in the box but Glasner was decisive, introducing Eddie Nketiah into the action on the hour mark for the unfortunate Canvot.
The impact was immediate as Nketiah played a Harry Kane role, dropping deep, picking up the ball and moving into the goalmouth, but Palace could not find a way through.
The former Arsenal man saw the impressive Alomerovic make two superb saves in the 70th and 72nd minute as both Kamada and Wharton were introduced from the bench.
A Nketiah diving header, followed another chance, mis-hit in front of goal, just after the 80-minute mark and the chances kept coming, but Glasner’s men could not find a way through.
Deep in additional time, a Guéhi whipped cross flashed across the six-yard box of the visitors, but the ball evaded the legs of both Romain Esse and Daichi Kamada, indicative of the frustration felt by all but the 1,000 travelling fans.
In the end, Palace had 17 attempts on goal to the visitors’ three, but only one statistic counted – that solitary goal.
AEK Larnaca proved to be an effective unit in their defending and match management, something which Glasner’s side will learn from as they continue to progress through their maiden European journey.
The result means Palace have now failed to win in their past three games. Next up for the Eagles is a Sunday afternoon clash against Premier League leaders Arsenal, featuring Ebere Eze.
Palace: Henderson, Guéhi (c), Lacroix, Canvot (Nketiah, 60), Mitchell, Muñoz; Pino (Wharton, 71), Lerma (Kamada, 71), Hughes (Esse, 87), Sarr (Uche, 87), Mateta
Subs not used: Matthews (GK), Benitez (GK), Clyne, Richards, Rodney, Devenny, Cardines