The Israel international has signed a five-year contract at Selhurst Park with the option of an additional season in a deal that is said to be worth around £21M.
Khalaili made 52 appearances in all competitions for Union SG last season, scoring six goals and registering six assists. He caught the eye of the Eagles who announced his arrival on Saturday morning.
Speaking to the club website for the first time, the midfielder showed his ambition as he highlighted the need for more silverware at the club.
“I have followed the Premier League for a long time. It’s a new challenge for me. And Crystal Palace I like, because I have followed them for a long time.
“They have deserved to win three trophies and I want to do more. It’s not enough to win three trophies. We want to do more as we can and I’m here to help the team.”
“Of course, it is the best league in the world,” he added. “It’s a new challenge. I love these new challenges – and I’m ready.
“I’m strong, I’m fast. I like to dribble. But I also like to defend. I like to help the team and to show the fans my quality.”
Palace won their first-ever European trophy last season as they lifted the UEFA Conference League this year following their triumphs in the FA Cup and Community Shield.
The side will also play in the Europa League next season and Khalaili will be key for manager Pierre Sage as he rotates his side for what will be a tough campaign.