In a back-and-forth contest on Monday night, the two sides evenly shared 40 shots on goal, with Eddie Nketiah and Ryan Yates both rattling efforts off the woodwork in the first period.
Palace looked likely to break the deadlock but Matz Sels heroically produced seven saves before Dean Henderson's mistake from Chris Wood's first-time strike gave Forest a first home league victory of the campaign.
Victory lifted Forest into the top eight and to their first home league win since a 3-1 result against Fulham in April, ending a six-game winless league run at the City Ground.
Forest goalkeeper Matz Sels saves a Daichi Kamada shot in Nottingham. (AP PHOTO)
Nuno, who watched from the stands while serving the first of his three-game touchline ban, hailed keeper Sels after dedicating the win to the fans.
"I saw it was difficult but so happy we can finally give this moment to our fans, always helping and supporting us so especially delighted for them," Nuno said.
"It says a lot about the game itself when Matz is one of the best players in the team. They are very good, always pressing and so much talent. We are delighted Matz did a very good job and kept us in the game.
"Before the break we showed how we must play football, we have to run more than them, cover, always have bodies in front and this is what is important.
After Eddie Nketiah and Ryan Yates both hit the woodwork before the break, New Zealand international striker Wood netted his fifth goal of the season on 65 minutes to give Forest an important victory while their impressive defensive efforts earned a third clean sheet of the season.
Henderson's mistake from Wood's strike meant Palace have failed to win in their first eight league games of a season for just the fourth time in their history.
You're welcome, — Nottingham Forest (@NFFC) @OfficialFPL managers 😎 pic.twitter.com/yZ9EY7rottOctober 21, 2024
Following defeat, Palace sit 18th without a win and are the lowest scorers in the league.
Oliver Glasner said Henderson apologised for his mistake but he refused to blame his goalkeeper.
"He tried to apologise but I didn't allow it," Glasner said.
"He doesn't need to apologise for a mistake he makes. It's always how we deal with them, the reaction of the team gives me a positive feeling for the next games.
"We know the challenges we have and we will need Dean and he will help us for sure."
