Late goals seal it for the visitors.
Colchester United's U21s fell to their first defeat of 2016 on Tuesday afternoon, after Crystal Palace came from behind to win 3-2.
The U's had been on top for much of the game, but Palace finished the stronger to take all three points.
The U's took the lead in the first half, when Femi Akinwande converted after an initial shot was blocked.
The visitors equalised around the hour mark, but the U's regained their advantage when Tosin Olufemi grabbed a goal from right back.
The U's continued to create a host of chances, but the game was to swing late on in the game.
They drew level again when they converted from close range after a corner, and sealed the victory at the death as they made it 3-2 in the final minutes of the game.