The 27-year old winger returns to Selhurst Park after last playing for the Eagles as an eight-year old and is looking forward to playing regular football under Ian Holloway.
"I left and there were a few times in my career that I was due to come back but didn't,” he told Palace Player.
"Now I'm here that's the main thing. I've always as a young kid dreamed of playing at Selhurst Park, so it's a young boy's dream coming true.
"I know Ollie (Holloway) really well. He was a massive factor in this move. He knows the league. He's done it before and I think he will learn from his time at Blackpool and bring it into the team here."