The Merseysiders started the game well but Palace scored the first goal of the game. Eberechi Eze did well to find Wilfried Zaha, who scored smoothly past Alisson Becker.
The second half saw new signing Darwin Nunez receive a red card for a cynical headbutt on defender Joachim Andersen.
However, Diaz played brilliantly for Liverpool and also scored their equalizer.
The Colombian received a pass from veteran midfielder James Milner. He beat his man, driving in from the left flank and firing a fine curling effort to beat Vicente Guaita and draw the home side level.
It was a fine strike and one that impressed and wowed everyone, including the retired World Cup winner.
Taking to Twitter, the legendary defender expressed his delight:
“Amazing Luis Diaz.”
The former Porto man pulled a strike of the highest quality to earn one point for the Reds.
Diaz has been another fine addition to Liverpool since his arrival from Porto in January this year for an initial fee of £37 million. The Colombian has scored five league goals and provided three assists in 15 matches for the Merseysiders.
However, it may be difficult to find a better strike than the one he scored today.
Liverpool enjoy an impressive transfer window so far
They have not had a great start to the season, having drawn 2-2 against Fulham in their first Premier League outing last weekend.
They will be looking to improve on their current performances as the season continues in full swing. Their unimpressive start to the new campaign, however, has been in contrast to their efforts in the transfer window.
The Reds went all out for Benfica goalscoring champion Darwin Nunez after the striker provided scintillating appearances for the Portuguese outfit. They splashed a club-record €100 million to bring him to Anfield this summer. The Uruguayan scored 34 goals in 41 matches for Benfica last season.
It was for good reason, though, as the Reds had to let go of Sadio Mane, who joined Bayern Munich for €32 million move.
Other players, including Neco Williams, Takumi Minanimo, Ben Davies, and Divock Origi, left Liverpool as well.
The Reds did manage to bring in two young teenagers, with Fabio Carvalho and Calvin Ramsey joining up from Fulham and Aberdeen FC respectively.