Taylor, who plays as a centre-forward, has signed until the end of the season and arrives from fellow Championship side, Lewes.
Taylor becomes the second attacking option manager Dean Davenport has brought in, in this window, with Palace looking for a strong end to the season. Commenting upon his latest recruit, Davenport said: "I'm really excited to have Amy join the club during this window. It's great to have another option in the final third and I'm confident she'll compliment the team perfectly with her attributes.
"With the new trio added in this window, I'm delighted with the strength in depth of the squad and we will now be pushing for a positive end to the season."
Taylor could be in line to make her Palace debut this Sunday when Davenport's side make the trip to the south coast to play Southampton in the SSE FA Cup.