The Latics boss made seven changes from the side beaten 3-0 by Manchester City on Saturday, including debuts for Chelsea loanee Patrick van Aanholt, former Celtic winger Shaun Maloney and ex-Wolves midfielder David Jones.

But npower Championship side Palace were out of sight at half-time thanks to goals from Darren Ambrose and 17-year-old Jonathan Williams.

Wigan finally perked up in the last 20 minutes with van Aanholt hitting the crossbar before former Eagle Ben Watson scored in stoppage time.

But Palace held on to earn a third-round meeting with Middlesbrough next week.

Martinez said: "I felt we started well, probably too well. Then we switched off and defensively we didn't show real concentration or intensity and Crystal Palace took their two opportunities really well.

"After that it was always going to be difficult. Crystal Palace were very well organised, they worked really hard off the ball. We tried everything but scored the goal a little bit too late.

"You have to give credit to Crystal Palace. We are disappointed with the manner in which we conceded our goals, but if you are going to lose, I'm happy in the manner we tried to get back into it and played the way we wanted to play."

Eagles boss Dougie Freedman appears to have unearthed a new star in Wales Under-21 midfielder Williams, who marked his second start for the club with his first senior goal.

"I can remember Ben Watson, at 17, playing in the first team here, and the progression he's made," Freedman said.

"So I am looking forward to seeing players like Jon doing the same, up to the Premier League, hopefully with us. He's a very good prospect."