Looking to make the perfect opening to the defence of the FA Cup crown they lifted last season, Palace calved out the first chance of the game when Yeremy Pino fired just wide after latching onto Christantus Uche’s cute pass.
However, Macclesfield - born from the ashes of Macclesfield Town who were wound up in the High Court six years ago - soon grew into the game, with first Luis Lacey and then Josh Kay going close to breaking the deadlock.
And the home supporters were soon sent into raptures inside Moss Rose Stadium when midfielder Dawson - just seconds after having his head bandaged following a clash with Palace defender Jaydee Canvot - nodded home after 43 minutes.
Hoping to turn the game on its head, Palace boss Oliver Glasner made three changes at half-time, with January signing Brennan Johnson, midfielder Will Hughes and defender Tyrick Mitchell introduced from the substitutes bench.
But the trio were unable to lift the spirits of the sluggish visitors, who almost went two-nil down when Macclesfield midfielder James Edmondson forced a strong save from Palace goalkeeper Walter Benitez.
Continuing to pile the pressure on Palace, winless in their eight games beforehand, the hosts were soon in dreamland when forward Buckley-Ricketts showed incredible penalty-box instincts to stab home after 60 minutes.
With their backs understandably against the wall for the remainder of the tie, Palace forward Pino set up an intense finish when he curled a fantastic free-kick past Max Dearnley on the 90th-minute mark.
However, Macclesfield were able to hold on for a magnificent victory which led to supporters flooding the pitch after the full-time whistle, while Wayne Rooney was reduced to tears after watching his brother, John, preside over one of the greatest - if not the greatest - upsets in FA Cup folklore.
Macclesfield's victory - the first time a non-league side has defeated the FA Cup holders since Palace beat Wolverhampton Wanderers in 1908-09 - was particularly poignant as the family of Ethan McLeod, who tragically passed away at the age of just 21 following a car accident last month, were in attendance in Cheshire.