Holloway was charged with two separate counts after Roberto Soldado's penalty condemned his side to defeat on the opening weekend of the Premier League season.
And the FA has now announced he has decided not to contest the charges.
"Ian Holloway will serve a two-match touchline suspension with immediate effect after Crystal Palace notified The FA that they would not be appealing the sanction," a statement on its website read.
"Holloway was given the ban along with an £18,000 fine after he admitted two separate charges, both in relation to his side's game against Tottenham Hotspur on Sunday 18 August 2013.
"Following an Independent Regulatory Commission hearing on Wednesday 28 August 2013, the following results were reached.
"In relation to a breach of FA Rule E3 in that Holloway's language and/or behaviour in or around the match officials' changing room after the game amounted to improper conduct, he was given a two-match touchline ban to commence with immediate effect and fined £10,000.
"In relation to a breach of FA Rule E3 in that Holloway's post-match comments constituted improper conduct in that they questioned the integrity of the match referee and/or match officials in general, and/or implied that the match referee and/or match officials in general were motivated by bias; and/or brought the game into disrepute, Holloway was fined £8,000.
"The sanctions were stayed to allow Holloway the opportunity to lodge an appeal having considered the written reasons. The FA were notified on Tuesday 3 September that he would not be appealing, therefore his touchline ban commences with immediate effect."
Among many post-match comments relating to the performance of the officials, Holloway said: 'It's going to be a long hard season for me with these people. I had this with Blackpool. Certain clubs get fouls and others don't. I just want a bit of fairness."
- Sports & Recreation
- Ian Holloway