The three points were never in much doubt after Lee's opener.
Sean Scannell was denied by the post with a fierce shot, but that only delayed Palace's progress, Danns heading home Derry's whipped cross to hand Palace a two-goal lead at the break.
Blackpool responded after the break, Baptiste heading home to give the visitors hope.
Baptiste then had another goal disallowed, which would have made it 2-2. But, once Ambrose had made it 3-1, from what looked suspiciously like an offside position, Palace never looked back.
N'Diaye completed the rout, the Palace substitute making no mistake from close range after good work by Lee Hills.
Crystal Palace boss Neil Warnock:
"I was just pleased to see a goal go in because it's got that off our back.
"We needed to be patient as we knew the chances would come our way.
"We're just delighted to get the points and have a two-week international break as, hopefully, that will give us a chance to get three or four players fit."
Blackpool boss Ian Holloway:
"Maybe it's a little bit of karma for Neil Warnock after what happened to Palace at Bristol City when they scored and it wasn't allowed.
"But that's a two-goal turnaround and the linesman might as well have banged them both in.
"You've got Mr Sepp Blatter sitting in his nice office dreaming of wonderful things for football, but why doesn't he come down here and see what mine and Neil Warnock's job is like when it is affected by human error?
"Why haven't they got cameras? The officials can speak to each other easily enough now. Why aren't we using laptops that are linked up and can give a decision in five seconds?"
90:00+4:07 The referee blows for the end of the match.
89:37 Corner taken left-footed by David Vaughan, Patrick McCarthy makes a clearance.
88:02 Assist by Lee Hills.
88:02 GOAL - Alassane N'Diaye:Crystal Palace 4 - 1 Blackpool A goal is scored by Alassane N'Diaye from inside the six-yard box low into the middle of the goal. Crystal Palace 4-1 Blackpool.
87:32 Ben Burgess takes a shot. Save by Julian Speroni.
85:06 Substitution (Blackpool) makes a substitution, with Hameur Bouazza coming on for Neal Eardley.
85:06 Substitution Lee Hills on for Darren Ambrose.
85:06 Shaun Derry challenges Charlie Adam unfairly and gives away a free kick. Billy Clarke takes the direct free kick.
80:03 Darren Ambrose is ruled offside. Free kick taken by Paul Rachubka.
79:13 Corner taken by David Vaughan from the left by-line, clearance made by Alassane N'Diaye.
75:12 Danny Butterfield concedes a free kick for a foul on Ben Burgess. Stephen Crainey shoots direct from the free kick.
73:28 Billy Clarke takes a shot. Corner taken right-footed by David Vaughan. Julian Speroni makes a save.
73:00 Foul by Nick Carle on Stephen Crainey, free kick awarded. Paul Rachubka restarts play with the free kick.
71:36 Save by Paul Rachubka.
71:36 Substitution (Blackpool) makes a substitution, with Billy Clarke coming on for Brett Ormerod.
71:36 Inswinging corner taken by Darren Ambrose,
70:15 Inswinging corner taken by David Vaughan from the right by-line, save by Julian Speroni.
68:28 Booking Alex Baptiste goes into the book.
68:07 Booking Johannes Ertl is booked.
67:47 Alassane N'Diaye challenges Alex Baptiste unfairly and gives away a free kick. Paul Rachubka takes the direct free kick.
65:58 Assist on the goal came from Johannes Ertl.
65:58 GOAL - Darren Ambrose:Crystal Palace 3 - 1 Blackpool Darren Ambrose gets on the score sheet with a goal from the edge of the penalty area low into the middle of the goal. Crystal
Palace 3-1 Blackpool.
65:11 Substitution Alassane N'Diaye joins the action as a substitute, replacing Alan Lee.
62:13 Outswinging corner taken by David Vaughan from the left by-line, Alex Baptiste produces a header from deep inside the six-yard
box which goes wide of the right-hand post.
61:44 Neil Danns gives away a free kick for an unfair challenge on David Vaughan. Free kick taken by David Vaughan.
60:47 Charlie Adam challenges Nick Carle unfairly and gives away a free kick. Free kick taken by Nathaniel Clyne.
59:10 Neal Eardley produces a right-footed shot from the edge of the box and misses to the left of the target.
57:15 Substitution Nick Carle comes on in place of Sean Scannell.
54:29 Corner taken by David Vaughan.
52:21 Assist by David Vaughan.
52:21 GOAL - Alex Baptiste:Crystal Palace 2 - 1 Blackpool Alex Baptiste scores a headed goal from deep inside the penalty area. Crystal Palace 2-1 Blackpool.
50:01 Neil Danns challenges Jason Euell unfairly and gives away a free kick. Rob Edwards takes the direct free kick.
45:20 Shot by Darren Ambrose. Save by Paul Rachubka.
45:01 The second half begins.
45:01 Substitution (Blackpool) makes a substitution, with Ben Burgess coming on for Jay Emmanuel-Thomas.
45:00+2:19 The referee blows for half time.
43:31 Outswinging corner taken left-footed by David Vaughan, clearance by Alan Lee.
40:55 Jason Euell concedes a free kick for a foul on Patrick McCarthy. Julian Speroni restarts play with the free kick.
Correction - 38:40 Right-footed shot by Alex Baptiste went over the net.
38:40 Alex Baptiste has a drilled shot and went wide left of the target.
35:51 The official flags Alex Baptiste offside. Indirect free kick taken by Julian Speroni.
31:03 Assist by Shaun Derry.
31:03 GOAL - Neil Danns:Crystal Palace 2 - 0 Blackpool Neil Danns scores a headed goal from deep inside the penalty box. Crystal Palace 2-0 Blackpool.
30:14 Charlie Adam concedes a free kick for a foul on Shaun Derry. Clint Hill takes the direct free kick.
24:58 Free kick awarded for a foul by Keith Southern on Shaun Derry. Direct free kick taken by Clint Hill.
24:07 Sean Scannell has an effort at goal from deep inside the penalty box that bounces off the post.
22:44 Keith Southern takes a shot. Save by Julian Speroni.
21:37 Jay Emmanuel-Thomas concedes a free kick for a foul on Johannes Ertl. Free kick taken by Shaun Derry.
16:52 Danny Butterfield concedes a free kick for a foul on Jason Euell. Rob Edwards takes the free kick.
14:47 Jason Euell gives away a free kick for an unfair challenge on Clint Hill. Julian Speroni takes the direct free kick.
11:44 Outswinging corner taken by David Vaughan from the left by-line, Patrick McCarthy manages to make a clearance. Foul by Shaun
Derry on Charlie Adam, free kick awarded. Charlie Adam shoots direct from the free kick.
9:13 Free kick awarded for a foul by Charlie Adam on Patrick McCarthy. Julian Speroni restarts play with the free kick.
8:23 Jason Euell concedes a free kick for a foul on Nathaniel Clyne. Julian Speroni restarts play with the free kick.
6:20 Foul by Shaun Derry on Neal Eardley, free kick awarded. Neal Eardley takes the free kick.
3:22 Assist on the goal came from Danny Butterfield.
3:22 GOAL - Alan Lee:Crystal Palace 1 - 0 Blackpool Alan Lee grabs a headed goal from inside the box. Crystal Palace 1-0 Blackpool.
0:00 The game kicks-off.
Live text and data provided by The Press Association.
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