Dalton -- who replaced long-time Bengals signal-caller Palmer last year -- completed 16-of-30 pass attempts for 210 yards as Cincinnati (6-5) got back into the AFC playoff hunt with its third straight win.
Mohamed Sanu nabbed two of the Daltons' TD tosses in the victory.
Oakland's Palmer was booed loudly by the Bengals fans in his first appearance in Cincinnati since he demanded to be traded in January 2011 after seven years with the team.
He ended up going 19-of-34 through the air for 146 yards with a touchdown and an interception as the Raiders (3-8) dropped their fourth straight.
2014: The Year in Music [PHOTOS]