Musa Barrow bagged a brace and assisted the opener for Riccardo Orsolini at the Stadio Olimpico, while Stefano Denswil got an own goal and Henrikh Mkhitaryan's late header set up a tense finale.
Palacio said, “Having Mihajlovic on the bench fires us up even more, it's natural. When he is in the locker room, or on the bench, you can sense the difference."
He continued: “I think we had a great performance in a difficult arena against a very strong time. We proved ourselves, scored three goals, showed sacrifice and humility, so we must continue like this.
“It's a bit of everything. We have great faith in the coach and his style of football, we work hard during the week and want to keep this momentum going."