On the last day of the January 2013 transfer window, Phillips signed on loan to Crystal Palace until the end of the 2012–13 season. He made his debut as a half-time substitute in the 2–1 win at home to Charlton Athletic, after being 1–0 down prior to his introduction, and scored his first goal for the Eagles in their next game, against his former club Watford at Vicarage Road. Palace were again trailing when he came off the bench, 2–0 down with half an hour remaining, and Phillips scored the equaliser as the side fought back to achieve a 2–2 draw. Phillips' hat-trick, scored in eight minutes either side of half-time in a 4–2 defeat of Hull City, made him the oldest scorer in Palace's history at 39 years 7 months. This is also the club's fastest ever hat-trick in the league, beating the previous record set by Dougie Freedman in 11 minutes in a 5–0 win against Grimsby Town exactly 17 years before. On 27 May, he came on as a substitute in the play-off final and converted an extra-time penalty to secure Palace's promotion to the Premier League at the expense of former club Watford. Steve Parish indicated in the "Croydon Advertiser" that Phillips had agreed to a one-year deal with Palace in July 2013.