Having endured a frustrating start to the Premier League season (D3, L4), Palace travelled to the East Midlands determined to secure a positive result and move out of the relegation zone.
The visitors came close to an early breakthrough when Eberechi Eze curled an effort narrowly wide from the edge of the box, while at the other end, Dean Henderson saved smartly from Elliot Anderson after a superb piece of close control by the Forest midfielder.
Both sides continued to create plenty of chances in an absorbing opening half-hour, with Eddie Nketiah firing a speculative long-range effort against the woodwork and Ryan Yates directing a looped header agonisingly against the far post.
Undeterred, Forest created another good opportunity on the stroke of half-time, however, Callum Hudson-Odoi’s delivery proved too strong for Wood, who shot straight at Henderson on the stretch.
The early stages of the second half followed a similar pattern to the first, with Eze seeing a sharp volley thwarted by Matz Sels in the Forest goal.
The England international went even closer on the hour mark, but Sels stood firm once again, diving brilliantly to tip Eze’s effort onto the bar.
Those saves proved to be crucial, with the hosts breaking the deadlock in the 65th minute as Wood’s first-time effort from 20 yards squirmed beneath the grasp of a slow-to-react Henderson.
Armed with the momentum, Forest went in pursuit of a quick-fire second to put the game beyond the visitors.
However, with time ticking into the final 10 minutes, Sels came to the hosts’ rescue, producing another stunning save to deny substitute Jeffrey Schlupp.
Palace continued to probe for a late leveller, but the Forest rearguard held firm under pressure to secure a valuable three points and move up to eighth in the table.
Misery for the Eagles though, as they've now gone winless in the opening eight league matches of a season for the first time since 1992/93 to pile the pressure on boss Oliver Glasner.
Flashscore Man of the Match: Matz Sels (Nottingham Forest)