Lewis Miley's strike on the stroke of half-time send United ahead at the break in their Group E encounter, after Palace struck the woodwork twice in the opening 45 minutes, before Killian Phillips' second-half brace turned the cup contest in the hosts' favour at Champion Hill.

However, United's second-string levelled in the final stages through Jay Turner-Cooke's composed finish before 16-year-old Miley sealed maximum points in the young Magpies' final game of 2022 after slamming the ball into the net from close-range to stage a late, great comeback.

Turner-Cooke, Miley and Dylan Stephenson, who all featured as second-half substitutes in the Magpies' 2-1 friendly victory against Rayo Vallecano on Saturday, were handed starts against the Eagles' second-string along with Alex Murphy, Niall Brookwell and Nathan Carlyon, who were all named on the bench against the La Liga outfit at St. James' Park.

Newcastle goalkeeper Jude Smith kept the visitors on level terms in the early stages with a terrific double save to deny Palace striker Ademola Ola-Adebomi, pushing away the forward's initial header from Tayo Adaramola's cross before bravely blocking the teenager's close-range rebound.

United's youngsters were fortunate not to fall behind as Phillips struck the post. After Ola-Adebomi latched onto a long ball, the resulting shot was saved before Phillips was granted an opportunity in front of goal, with his effort clipping the outside of the left-hand post.

Ola-Adebomi took his turn to strike the woodwork when United failed to clear the ball from danger, with the striker's venomous shot crashing off the left-hand post.

In the 44th minute, Miley opened the scoring after registering his second goal in as many games at under-21 level. The Stanley-born teenager, who made his Magpies first-team debut against Al Hilal in Riyadh this month, latched onto Turner-Cooke's pass before firing a low effort underneath Palace goalkeeper Owen Goodman.

Charlie Wiggett, who joined the Magpies from Chelsea in the summer of 2021, was forced to clear the ball off the line in the final action of the opening half. After Ola-Adebomi's powerful strike squirmed under Smith, trickling towards the goal line, the Reading-born defender was alert to clear the ball to safety.

In the second-half, Newcastle found themselves on level terms as Phillips equalised in the 52nd minute. After the United defence were unable to clear their lines inside the penalty area, the ball landed to Phillips who calmly slotted the ball into the net.

Palace hit the post for a third time of the afternoon as Phillips was unable to make strong contact with the ball inside the six-yard area following a teasing free-kick, and scuffed the ball onto the right-hand post to the relief of the United squad.

Wiggett was on hand to prevent Ola-Adebomi from sending the South London outfit ahead after importantly blocking the forward's rebound on the goal line after Smith denied Adler Nascimento's initial effort. 

In the 76th minute, Newcastle fell behind as Ola-Adebomi held off his marker before squaring the ball into Phillips' path, who drilled a low effort into the net.

With the clock approaching the full-time whistle, Newcastle equalised in the second minute of stoppage-time, courtesy of Turner-Cooke as the South Shields-born midfielder - another youngster to make his first-team bow this month - picked the ball up inside the box before placing a cool effort into the left-hand corner. 

There was still enough time for an incredible twist to the tie as Miley fired Newcastle in front in the 95th minute, evading his marker on the right byline before arrowing an excellent strike into the far left-hand corner, ending the young Magpies' seven-game streak without a win across all competitions.

Newcastle United Under-21s: Jude Smith, Harry Barclay, Niall Brookwell, Charlie Wiggett, Alex Murphy (c), Nathan Carlyon (Kyle Crossley 80), James Huntley (Jamie Miley 80), Josh Scott (Isaac Westendorf 66), Lewis Miley, Jay Turner-Cooke, Dylan Stephenson (Michael Ndiweni 90).

Subs not used: Max Thompson.