A brace from Sergio Aguero and a goal from David Silva put the seal on a convincing performance after midfielder Fabian Delph had opened the scoring.
It was only Delph's 10th appearance since signing from Aston Villa for £8 million in controversial style, days after committing his future to the Villains.
Jermaine Jenas knows all about the England international's talents having played alongside him at Villa.
'His attributes will really benefit City'
And he told BBC's Match of the Day Delph has the ability to make his move to mega rich City a success.
"He made way in midweek when Yaya Toure played but he came in and put in a top performance for Manchester City," Jenas told MOTD.
"He's a player that I've played with at Aston Villa and I know him very well.
"He's a dynamic box-to-box type midfielder he's almost something that they haven't got really because Yaya usually plays a little bit higher. His goal and the confidence and technique to hit that shows that he's growing and developing.
"His tracking and athleticism is really going to benefit Man City. But it's not only in defensive areas, it's getting into attacking areas (too).
"He's got great energy about him and its just the simple things sometimes that he does.
"That's the first time that he has completed 90 minutes for Manchester City since he arrived and I think for Pellegrini and for Roy Hodgson and England that's fantastic news."
Under the microscope
Delph will be under the microscope having left the relative comfort of playing week in, week out at a big club like Aston Villa for a big money move to City with their huge squad.
The Etihad is something of a graveyard of English talent with the likes of Scott Sinclair and Jack Rodwell high profile victims.
But if Jenas is right he could carve out a niche as City's new Nigel de Jong as we approach the business end of this most open of Premier League seasons with the Blues still in the hunt for four trophies.
If Delph continues to perform as he did against Palace it will be difficult for Pellegrini to leave him out of the side.