The Clarets were left heartbroken as a late Crystal Palace penalty denied them all three points and a share of second place in the U18 Professional Development League's northern section.
Burnley, lead by assistant coach John Townson, went in front through Tristan Jumeau's first-half strike before Sean Robertson equalised from the spot in the 86th minute to spare the south group leaders only a fifth defeat of the season.
Townon (above), taking the side in the absenc of Danny Cadamarteri on England under-18 duty, said: “I thought the lads were magnificent and really delivered the game plan to a 'T'.
"We created a number of chances and really should've been three or even 4-0 up.
"Unfortunately in football you know that can come back to haunt you and despite being defensively solid throughout and feeling comfortable, they got a sniff and took it.
"I can't fault the lads' effort and ability to carry out a game-plan. If you play like that 10 times you'll win 9 games and so the idea is to work hard next week to deliver that level of performance again and tidy up the few areas which let us down.”
Tristan Jumeau scored his seventh goal of the season
The Clarets started the game brightly and came close when Jumeau hit an effort over the bar from just yards out.
The dominant home side threatened again as Marley Blair caused all sorts of problems down the left before firing straight at Oliver Webber in the Palace goal.
Kian Yari then tested the Eagles’ stopper from a 25-yard free-kick.
And the Clarets finally earned the deserved breakthrough 10 minutes before the break when Lewis King hit a delightful long pass to Jumeau, who brought the ball down well just outside the penalty area before slotting home.
Palace almost levelled just before half-time as Joshua Malcolm’s dinked effort was tipped over by Burnley keeper Adam Bruce.
But the Clarets continted to press in the second half and nearly doubled their lead through Craig Ellison, who headed just wide of the post.
Ellison then saw a header and a shot saved by Webber to keep Palace in the game at 1-0.
And with two minutes to go, the visitors were handed a lifeline from the penalty spot.
Up stepped Palace winger Robertson to ram the ball past Bruce and deny the Clarets a second win in three games and the chance to sustain their hopes of a top-two finish and a play-off slot.
Burnley: Bruce, Moss, King, Trialist, Glennan, Kershaw, Yari (Harris 90), Jumeau, Blair (Tucker 82), Layton, Ellison. Subs: Allen, Mupariwa, Harris, Tucker, Mpofu.