The Tigers boss watched his side produce a superb performance against the Eagles, who he managed for a short spell in 2005 before leaving to take up the hotseat at Birmingham.
However, City were unable to convert their chances with Robert Koren - making his 100th appearance for the club - firing over from close range midway through the first half when the goal was at his mercy.
The visitors seemed to be feeling the effects of seeing their 14-game unbeaten run come to a halt at Leeds on Saturday, but could have won it with the last kick of the game, only for David Stockdale to deny winger Wilfried Zaha.
The draw sees Hull drop a place to sixth in the Championship, while Ian Holloway's outfit stay a point behind leaders Cardiff, who were held at Derby, after failing to find the net for the first time this season.
City went close to making the breakthrough in the third minute, but Koren and David Meyler could not get on the end of a dangerous Robbie Brady ball that fizzed across the six-yard box and out of play.
Koren was guilty of missing a glorious chance to make his side's dominance count in the 24th minute. Ahmed Elmohamady's persistence on the right saw him deliver a cross that fell to the influential midfielder just six yards out, but he leant back and blazed the ball over the top.
The Hull captain was aggrieved not to be given a penalty when his blocked shot rebounded on to a Palace's defender's hand in the box before Stephen Quinn volleyed wide in the 35th minute.
Hull started the second half where they left off in the first and Julian Speroni had to parry a Quinn shot to safety, while Sone Aluko curled a 25-yard free-kick just over.
The Tigers kept knocking on the door and Quinn wasted another chance, flicking an Elmohamady cross wide, before Koren failed to breach the defences of Speroni.
Hull were fortunate not be reduced to 10 men with 14 minutes remaining when last man Brady was only booked for bringing down Zaha 25 yards out.
Bolasie had a chance two minutes from time, but he shot wide after latching onto a short back pass, while Speroni, diving to his right, produced a wonderful save to deny substitute Aaron Mclean moments later.
Zaha - linked with a January move to Arsenal - almost snatched the three points for Palace deep into stoppage time, but Stockdale was on hand to deny him.
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