Preston North End succumbed to a 20 minute first half blitz from the Latics as they exited the Youth Alliance Cup.
The Oldham Athletic youth team have now gone over 500 minutes without conceding a goal with this result.
It was a day when North End were punished for missed chances and from quality set play work by the hosts, although the margin of victory was harsh on the Lilywhites.
Latics took the lead early in the game through an unlikely source.
Jack Tuohy's corner found the head of Etches and Palmer scrambled the ball over the line to give the hosts the lead.
Minutes later, Etches got himself on the scoresheet after another Tuohy corner into the box.
Tuohy's corners were causing the Lilywhites’ defence problems, and he made Nick Harrison’s team pay again just after the half hour mark.
This time, central defender Edmondson rose highest and forced the ball over the line to put Latics in control.
Three became four just before the break as great team play saw the ball fall to Jacobs on the left-hand side.
He cut inside his defender and finished from 18 yards into the bottom corner to give the home side a healthy lead at the break.
Preston came out showing intent in the second half but the defence stayed resolute and kept the strikers at bay.
Neat interplay between Jordache Walters and Knight saw the latter place the ball beyond the goalkeeper to seal a 5-0 victory over a Preston side that sit near the top of the league.
Speaking after the match, Nick Harrison said: “We started quite well and then we conceded three set plays within a 20 minute period in the first half.
"We ended up 4-0 down mainly because after the third we went chasing the game and they broke on us, and, to be fair, it was a good finish.
“I wouldn’t say it was a 5-0 game, we were just poor defending three set pieces and found ourselves 3-0 down after something like 30 minutes.
“At full-time we just told them that they need to be braver and stronger from set pieces; that was the main message.
“If we had defended the corners and set pieces better, I think we would have done well because we had two early chances that we really should have scored from.
“I think for us what the massive plus was, was seeing Jack Ryan come on for the first team on Saturday afternoon.
“We said to them after the first team game that this is what can happen if you work hard, and that is what Jack Ryan has done really.
“That was the one thing to try and give them a bit of encouragement.
“The one thing that Jack, Josh Brownhill, Ben Davies, Nick Anderton etc. all have in common is that they have worked hard.
“If the players can do that and understand that as well as progressing as footballers, they have got a good chance of making it at Preston North End.”
Thanks to Luke Ingram and Oldham Athletic for the use of their match report.