Despite being crowned the best coach in the top-flight by his Premier League peers, the Welshman missed out to Liverpool manager Brendan Rodgers for the overall prize, which was voted for by the managers of all 92 Football League clubs.
The former Stoke City coach arrived at Selhurt Park with the club struggling at the foot of the table, having lost nine of their first 10 matches of the season.
But Pulis quickly turned the tide, winning back-to-back matches after narrowly losing 1-0 away to Norwich City in his maiden game in charge.
The club slowly rose up the table, and six consecutive wins at the tail-end of the campaign - which included victories over Chelsea and Everton - helped them secure an 11th-place finish.
Having managed just seven points before he arrived, Palace ended the season with 45 and almost secured a top-10 finish.
Under Pulis, Palace picked up 1.46 points per game - the eighth best in the division over that period - and improved immeasurably at the back.
From having the leakiest defence in the league, Palace conceded 27 goals in 26 games under their new Welsh boss, and kept 10 clean sheets - a tally bettered only by Manchester City, Chelsea and Arsenal.
Their 3-3 draw against Liverpool, meanwhile, was one of the highlights of a spectacular Premier League season, as Dwight Gayle inspired a stunning comeback that ultimately ended the Reds' title dreams.
The award marks a remarkable turnaround in affection towards Pulis, who had been criticised for playing "anti-football" while at Stoke, with the Britannia Stadium outfit having sought to take the club in a different direction.