The Hornets academy graduate, now 39, rolled back the years from the bench to seal a 1-0 npower Championship play-off final win for Palace, who return to the top flight after eight years away.
Marco Cassetti was the villain of the piece for Watford having brought Wilfried Zaha down to hand the Eagles a penalty on the cusp of half-time in extra time.
Phillips had been on the losing side in play-off finals three times in his lengthy career - on which he will ruminate over the summer - and the Londoner was delighted to write a "fairytale ending" to Palace's season.
He told Sky Sports 1: "It's fourth time lucky. It's my fourth play-off final and I'm just delighted to get that feeling.
"To come on and get the winning goal against the club where it all started 20 years ago is a fairytale ending.
"I thought we certainly deserved to win the game. We created good chances and their keeper's pulled off some great saves.
"Going into extra time it becomes a lottery, cramp sets in and players are tired but we were magnificent today and you saw how well they defended at the end.
"From my experience you've certainly got to enjoy the day and we'll enjoy tonight.
"I felt confident and I wanted to take it. I had in my mind where I wanted to put it and I thought I'd smash it so I was delighted to see it fly into the top corner.
"I've scored at the old Wembley and now I've scored at the new Wembley and if that is my last game then what a way to sign off.
"I'm going to have a break now, I deserve it and every bit of my body's aching at the end of a long season. I'll go away and have a think.
"I certainly want to stay in the game whether that's playing or coaching."
Promotion meant winger Zaha was able to end his association with the Selhurst Park outfit on a real high ahead of his summer move to Manchester United, and the young England international was lost for words at the final whistle.
"I'm speechless," he said. "I'm exhausted and speechless and I don't even know what to say. It's my dream come true and this is all I wanted.
"To leave Palace now, knowing they're in the Premier League, that's all I wanted.
"I told myself I'd give all I can, I've given it 200 per cent and I've wanted it for so long. I just wanted to help out the team and I'm happy we actually made it to the Prem.
"Walking into the stadium with so many people was amazing and being able to play at such a great ground left me speechless. That's all I wanted."
Palace manager Ian Holloway believes it was his team's gritty performance which carried them through to the end.
"We fought it and battled it out," he said.
"We've had a tough few weeks before we got into the play-offs. Everybody got disappointed with us not getting automatic promotion but this group has been fantastic.
"I'm very fortunate in my life to have some wonderful players who play for me and I'm so proud of the club. We're in the Premier League so God help us!
"It's massive, absolutely massive. We've got plans to change the ground, it's getting a bit old in places, so I'm just delighted for everybody connected with the club. They're gentlemen and I'm very privileged."
Holloway is also determined to prevent more players following Zaha out of the door once the result has hit home.
"The bigwigs get the good players all the time, but we'll try and fight to keep as many of these as we can and try and add to it," he said.
"But tonight [Monday] I don't care. I'm delighted for Wilf, he's got us to the Premier League with a wonderful bit of skill and Kevin Phillips stuck it in the net so what more can I say?"
Midfielder Mile Jedinak was also struggling to find words for his emotions after the victory.
He said: "It means everything, means the world to be honest.
"I'm feeling so many things at the moment. I'm so proud of my team and my team-mates for making this all possible.
"It was a great team effort today and that's what got us the victory I think.
"It was a tight game. I think overall we just shaded it. We had some good chances in the second half and their keeper made some great saves.
"It's incredible, it's a dream come true."