The Blades had to come from behind; being 2-1 down with five minutes remaining to win the game when it all looked lost.
United have gone a long time since they were rewarded with a penalty and they came like buses as the home faithful was granted two - though the Eagles earned one themselves. And the game had it all when both sides saw a player dismissed.
Blades boss Gary Speed made just one change from the side that won 1-0 at Millwall the previous week; Richard Cresswell included in place of Matthew Lowton who was on the substitute's bench.
Andy Reid, who was a match winner at the Den, was given a start to make his full home debut at the Lane.
The score line (and events) may suggest that this game was a humdinger of a match, but the first half was far from it. Both sides struggled to find momentum in the game and the visitors had to wait until they were rewarded with a 'soft' penalty 18 minutes into the game before they took a strangle hold of the match.
Palace managed to get the ball out wide and provided a deep cross to the far post; defender Jean Calvé was adjudged to have fouled Neil Danns (replay's show the contact was minimal) and referee Anthony Taylor pointed to the spot. Danns got up himself to blast the ball home.
The Londoners picked up the pace from then on and seemingly were handed the majority of possession in the first forty-five minutes. But with 10 minutes left of the first half they almost doubled their lead when Wilfred Zaha saw his close range stab kept out by Steve Simonsen with his left foot.
But four minutes later the Blades were handed a way back into the game when in a controversial decision Mr. Taylor once again pointed to a penalty when Ched Evans was fouled by Nathaniel Clyne. To make matters worse for the visitors they saw Owen Garvan sent off after making his mouth to the referee.
Striker Richard Cresswell was given the responsibility of taking the spot kick and finished in fine fashion to net his third goal of the season.
United came out strong in the second half but the one man reduction didn't do them any favours, but almost took the lead; Cresswell saw his effort denied by Julian Speroni who was inspirational in the second half.
But seconds later Palace broke away and netted what looked like was going to be the match winner; James Vaughan lost his marker in the box as Palace broke free and Clyne produced a stunning cross for on loan Everton forward Vaughan to head home via the cross bar.
It was a big blow to the Blades who were looking strong but United didn't give up and a massive assault on the Palace goal severally tested Speroni in the Palace net!
The Argentinean shot stopper (and captain) kept out Mark Yeates as he tipped the wingers volley onto the post as the ball trickled away to safety.
He then prevented Stephen Jordan from finding a way to goal following a corner, it was swiftly followed up by Yeates whose shot cannoned off a Palace wall and again cleared.
But on 85th minute the Eagles wings were clipped and the defence breached as Ched Evans trickled the net, a Yeates cross was steered goal wards by Kyle Bartley, but again Speroni saved, pushing the ball against the crossbar. Evans, who arguably was offside when the ball was played in acted first to hook the ball home; 2-2.
A sigh of relief fell on Bramall Lane when Evans finished off when after a number of chances were wasted it felt like a goal was never going to come.
Two minutes later an opportunity to win the game was gifted when Daniel Bogdanovic was needlessly brought down in the box by former defender Claude Davis when the Maltese striker was running away from goal.
The former Barnsley striker picked himself up before sending Speroni the wrong way to give United all three points and their sixth win of the campaign.
Mr. Taylor was to have one more say when in the four minutes added on he gave match winner Bogdanovic a straight red card after a challenge on Clyne.
It was a much needed win and this victory handed them there third successive game without defeat.