Darren Ambrose fired home his 20th goal of the season and a goal which helped Palace gain a much needed point from this survival Sunday clash as the final relegation place was decided.
Hillsborough produced exactly the atmosphere predicted for this survival Sunday clash as both sides knew what was required to ensure their own Championship status.
Just over 5000 Palace fans welcomed their team onto the pitch with a sea of red and blue balloons as over 30,000 Owls fans made sure the stadium was rocking for the lunchtime kick-off.
The home side won the first corner of the afternoon but it was Palace who had the first chance as Shaun Derry got to the bye line and pulled it back for Calvin Andrew but his shot was saved at the second attempt by Lee Grant.
Wednesday's first chance was on eight minutes as Jermaine Johnson went past his man and managed to get the shot in but it was gathered by Speroni.
It was the visitors opening corner of the afternoon which saw the breakthrough on 24 minutes. The set piece was taken by Darren Ambrose and it was met perfectly by Lee and he headed it past Grant to give advantage to Paul Hart's side.
Just past the half hour mark and Palace survive a penalty appeal as Leon Clarke claims he has been tripped by his man in the box but Mike Dean waves away the claims.
A shot from Leon Clarke from distance went over the bar but it was not long before the same player got his side back on level terms. He gets the better of Danny Butterfield in a challenge for the ball near the touchline and runs clear into the box and fires the ball past Speroni into the opposite corner of the net.
As added time begins Clarke has to leave the field with an injury and is replaced by former Palace midfielder Tom Soares.
At the completion of six minutes of added time, the first period came to a close with both sides half way through one of the most crucial matches in their club's history.
Alan Irvine's side were obviously lifted by the last first half goal and started after the break well and only an excellent save by Speroni stopped Luke Varney giving the Owls a lead just before the hour mark.
But against the run of play Palace once again went ahead as Sean Scannell made his way down the right and cut the ball back for Ambrose to finish off a low, right-footed shot beyond Grant in the 63rd minute.
Wednesday kept pressing and it was Speroni again who denied Soares and Johnson headed a cross from substitute Etienne Esajas over the target as the home sides championship survival hopes were fading.
On 80 minutes Francis Jeffers should have made it all square but missed a header in front of goal after Johnson had put the cross over.
The drama was not over though as with four minutes remaining Darren Purse gave the home camp some hope when at the far post he converted a chance that fell to him from a throw in.
Dean added five nerve filled added minutes which saw pressure from both sides and sub Esajas hitting the Palace wall from a free kick while at the other end Stern John came off the bench to have a shot touched onto the post and then Purse cleared the danger.
The final whistle sent Palace's travelling support into party mood as the point meant survival and a great effort from every member of the playing and management staff after having suffered the ten point deduction.
As for Wednesday relegation is now the option as the Yorkshire side as they could not get the win and end the campaign without a win in seven matches.
Well done lads, a great effort on an emotional and tension filled afternoon for Eagles fans everywhere.
Sheff Wed Grant, Nolan (Jeffers 75), Purse, Beevers, Spurr,Varney, Potter, O'Connor (Esajas 67), Johnson, Tudgay,Clarke (Soares 45).
Subs Not Used: O'Donnell, Buxton, Hinds, Gray.
Crystal Palace Speroni, Butterfield, McCarthy, Lawrence, Hill,Ambrose, Derry, Ertl, Scannell (Davis 90), Andrew (N'Diaye 61),Lee (John 84).
Subs Not Used: Mann, Clyne, Carle, Djilali.
Booked: Andrew, Ertl.
Att: 37,121 Referee : Mike Dean (Wirral).