The Honduran reportedly tore his groin on Tuesday and was all but ruled out by club medicos but got himself up to help guide the Spurs into the semi-finals of the competition, citing praise from Redknapp.
"Wilson is as tough as old boots," Redknapp said.
"He tore a groin in training the day before the game, the scan showed a tear and the medical people said there was no way he could play.
"He came on the pitch at 3pm before the game, kicked a few balls and said he was okay. It was amazing really.
"That is a good sign at this club. Everyone wants to play rather than sit on the treatment table. If they have a chance they will."
Palacios admitted the match was one he was intent on playing in so put all injury worries behind him to realise a dream.
"Back in Honduras the FA Cup is always televised and we follow it a lot, it has a big impact on people there," he said.
"When you are young you dream of playing in big finals and I was no different."