Liverpool understandably had the better of the early openings, Owen twice spurning clear opportunities to put the hosts in front, but Palace held firm amidst waves of growing pressure.
Palace’s French goalkeeper Cedric Berthelin, deputising for the disciplined Alex Kolinko, was on hand to twice deny compatriot Bruno Cheyrou in the first-half, and would also shut out Owen when the England forward looked certain to score.
The second-half was Palace’s to savour, and they took the lead on 55 minutes. Danny Butterfield crossed in from the right, Dele Adebole mistimed his header and, with the ball skipping up, 23-year-old Julian Gray rocketed home a half-volleyed finish.
It would get even better for the youngster 25 minutes later. As Liverpool poured bodies forwards in search of an equaliser, Gray led the counter-charge, skipping past two red shirts before squaring for Stéphane Henchoz to divert the ball into his own net from yards out.
There was to be no such magic in the fifth round when Palace were defeated by Leeds United in controversial circumstances – but memories still abound of the night Gray turned Anfield red and blue.
Palace: Berthelin (GK), Symons, Powell, Popovic, Butterfield, Mullins, Derry, Gray, Granville (Freedman, 36), Adebola (Akinbiyi, 90), Johnson (Thomson, 88)
Subs Not Used: Black, Cronin