The palace statement came hours after United Kingdom newspaper the Mail on Sunday published footage of Andrew at Epstein's Manhattan residence in which he is seen looking out from a large door and waving a cheerful goodbye to a young woman.
The defamation case was brought by Virginia Giuffre, an alleged victim of Epstein, against socialite Ghislaine Maxwell, who was claimed to have introduced the prince to her friend Epstein, the BBC reported. Less than 24 hours later, Epstein was found dead in his prison cell.
Epstein's death sparked outrage as he was facing a 45-year sentence if convicted of multiple counts of sexually abusing under-age girls.
CNN could not independently verify the authenticity of the video or when it was shot. And strong though the palace statement may be it, it fails to answer the central question.
A video showing the Duke of York waving off a young woman from inside financier Jeffery Epstein's NY mansion has reignited speculation online, sending Buckingham Palace into full-on damage-control mode.
"His Royal Highness deplores the exploitation of any human being and the suggestion he would condone, participate in or encourage any such behavior is abhorrent", the statement continued.
The video was reportedly shot on 6 December 2010, around the time the Duke of York was photographed with disgraced billionaire Epstein in New York's Central Park. In a 2002 profile in New York Magazine, Mr Trump referred to Epstein as a "terrific guy".
Andrew has been dogged by accusations of a lack of judgment about his links with Epstein, but according to the Mail, it isn't as bad as Meghan Markle choosing to eat avocado. Epstein struck a deal, however, to plead guilty in 2008 to the Florida state felony prostitution charge, and register as a sex offender.
Andrew, 59, has been dogged by accusations of a lack of judgement about his links with Epstein, who was found hanged in his prison cell in NY on 10 August.
Prince Andrew, the Queen's third child, was named in court papers in Florida this month, in fresh allegations that he groped another young woman at Epstein's Manhattan property. For now, however, they're doubling down on their stance that the Duke of York was not privy to Epstein's alleged crimes, and that he has not committed any of his own.
Buckingham Palace has said Giuffre's allegations are "false and without any foundation" and that any suggestion Andrew ever engaged in sex with minors is "categorically untrue".