Ince is considered one of the hottest properties in the Championship and also held talks with Swansea and Stoke before sealing the temporary move in the last hour of the deadline.
Stoke made a late bid to sign Ince on a permanent deal, but Blackpool let the winger join Palace, with forward Stephen Dobbie moving in the opposite direction on loan until the summer.
A statement on Crystal Palace's website read: "Crystal Palace Football Club are delighted to announce the signing of Tom Ince on a loan deal until the end of the season."
Palace co-chairman Steve Parish has revealed he was pursuing Ince for the past eight months and will be hoping the youngster can help the Eagles avoid relegation.
The England international has scored seven goals in 23 appearance for Blackpool ahead of his switch to south London.
Ince appears to have played his final game for Blackpool, with his current deal expiring in the summer, and he departs with the Championships club's best wishes.
A club statement read: "Ince's final appearance for the club came at Barnsley a fortnight ago, and his final goal came against Leeds United on Boxing Day.
"Blackpool would like to thank Thomas for his efforts and wish him the best of luck in the future."
Eagles manager Tony Pulis was delighted after an exhausting day's work, telling Sky Sports: "I'm pleased. I think there's been some good business done by the club and we hope it gels as quick as will be necessary to keep us in the Premier League.
"We had plans with certain things which we'd had through the month. We were hoping to get them done a bit quicker but we've got them done, which is pleasing.
"The important thing was getting competition and cover. There's almost a third of the season to go so we needed that. Thanks to the chairman and the directors for backing us in that way.
"What we've got to do now is to get them into the groove as quickly as we possibly can.
"I had a good chat with Thomas and Paul (Ince) and they understand what we want. It's the same as all the players - hoping they settle in to what we want to do and give us the competition and quality that the group needs."