Goals from Leroy Sane, Raheem Sterling (2), Sergio Aguero and Fabian Delph sealed the win, with City remaining top of the Premier League table on goal difference.
Club journalist Rob Pollard has taken a look back at the game.
City in fine form
City’s win means they remain unbeaten in eight games so far this season.
They sit top of the Premier League table, with 16 points from six games, and have made positive starts in both the Champions League and Carabao Cup.
It’s been a superb start to the campaign and City’s performance level seems to be improving all the time. In their last five games in all competitions, they’ve managed a remarkable 22 goals, conceding only once and often overwhelming their opponents with the quality of their football.
Their 21 league goals from six matches is their best-ever return at this stage of the season and they are the first side to score 5+ goals in three consecutive top-flight matches in the same season since Blackburn did so in 1958-59.
Conversely, the result means Palace become the first team to start a Premier League season with six defeats and no goals, although can take heart from their performance for much of the first half.
Irresistible Sane
Leroy Sane was given the man-of-the-match award after he scored one and set up two.
He opened the scoring with a brilliant piece of improvisation that saw him control David Silva’s pass and finish past Watne Hennessey expertly.
That was his fifth in five games, and he looks to responded well to spending the first six matches of the season on the bench.
Sane then turned provider, delivering a perfect ball across the box for Raheem Sterling to score City’s second, before producing an exquisite, inch-perfect cross for Sergio Aguero, who powered a header past Hennessey for the fourth.
There a few 21-year-olds in world football who can match his potential. City have one of the best talents in the game.
Rock-solid Stones
The glut of goals in recent matches has taken most of the attention – but the form of John Stones shouldn’t go unnoticed.
He’s been superb – quick, strong in the air and reading the game superbly – and is a big reason behind City conceding just three goals in eight games this season.
He handled the physical challenge of Christian Benteke well and appears to be growing on confidence all the time.
Mendy concern
The only negative was the injury to Benjamin Mendy, a player who has made a huge impact since his debut at Bournemouth last month.
He brings additional pace and vibrancy to City’s left side, and he’s shown already he is a wonderful crosser of the ball who will create plenty of chances this season.
But he went off during the first half after suffering a knee injury when challenging Andros Townsend.
He will be assessed by City’s medical staff and Guardiola will be hoping he isn’t sidelined for too long.