Dirk Kuyt secured a point for Liverpool with the last kick of the game following a dramatic encounter at the Emirates.
The contest was set to end 0-0 until Robin van Persie fired an injury-time penalty. Minutes later referee Andre Marriner again pointed to the spot, with Kuyt converting to give the visitors a share of the spoils against the odds.
Earlier in the game Jamie Carragher (concussion) and Fabio Aurelio (thigh) had to leave the field - making Liverpool's comeback all the more remarkable.
The result leaves them four points off European qualification, though rivals Tottenham have two games in hand. Arsenal, meanwhile, trail Manchester United by six points as Alex Ferguson's men chase a record 19th title.
Kenny Dalglish named an unchanged side following the 3-0 win over FA Cup finalists Manchester City on Monday.
That meant another start for 18-year-old John Flanagan, though Samir Nasri would hope to pose the right-back more questions than either James Milner or Mario Balotelli managed to do.
Straight away Arsenal probed down Liverpool's right and earned a free-kick following a foul from Luis Suarez. Cesc Fabregas whipped into the box, with Abou Diaby heading narrowly wide.
Liverpool countered with a cross from Suarez which was met by Andy Carroll before Jay Spearing tumbled under a goalmouth challenge from Johan Djourou. Andre Marriner had a good view and decided not to blow his whistle.
A speculative effort from Theo Walcott almost gave Arsenal a lead on 12 minutes when it was spilt by Pepe Reina. van Persie looked to capitalise, flashing the ball back across goal only for Flanagan to intervene with a fine clearing header.
The pressure was starting to mount and Arsenal could consider themselves unlucky not to be 1-0 up when Laurent Koscielny beat Reina to a corner before rattling the crossbar.
Liverpool's cause was not helped on 20 minutes when Aurelio pointed to his hamstring and indicated that he would have to leave the pitch, with 17-year-old Jack Robinson stripping down to make it four Academy graduates among the eleven wearing black.
Aurelio will now join Daniel Agger, Glen Johnson and Martin Kelly in the treatment room as defensive options continue to dwindle.
Arsenal didn't let up, Fabregas striking hard and low into the hoardings after a neat combination with van Persie.
The referee wasn't doing the visitors any favours, either, booking Flanagan and Martin Skrtel for tackles when both appeared to win the ball.
There was one more narrow escape for Liverpool before the break when Fabregas nutmegged Spearing with a throughball to Emmanuel Eboue before the Ivorian's shot was deflected to safety.
Suarez tried to alter the tone of the contest after the restart with a single-minded run and shot which Wojciech Szczesny was relieved to see ghost wide.
But once again Liverpool's attempts to get a foothold in the game were disrupted by injury, the impenetrable Carragher being knocked unconscious after a clash of heads with teammate Flanagan.
A lengthy delay followed before Carragher was stretchered off the field to be replaced by Sotirios Kyrgiakos.
Still Suarez did his best to score against the run of play, earning a yard of space for a shot which Szczesny saved with a dive to his left. Shortly after that he received the ball from Dirk Kuyt before twisting past a defender and forcing Arsenal's man between the sticks to beat the ball away.
At the other end, Robinson, Skrtel and Flanagan were all doing sterling work to keep Arsenal at bay, though van Persie twice made Reina work: first with a header towards the bottom corner and then with a one-on-one shot which was brilliantly palmed away.
Some intricate football from Liverpool then provided Suarez with time to shoot from an acute angle, similar to when he scored a memorable goal at Sunderland earlier this year. This time he wasn't so clinical, skewing well wide.
Just when it looked like Liverpool were going to gain a creditable draw, Spearing felled Fabregas in the box and van Persie converted the subsequent penalty kick to keep Arsenal's title hopes well and truly alive.
Kuyt attempted a remarkable equaliser straight from the restart but Szczesny was wise to it.
But the drama was still not over. Ten minutes into stoppage time Andre Marriner again pointed to the penalty spot - this time after a push from Eboue on Lucas. Kuyt blasted home and every single Liverpool player ran to congratulate him.
Liverpoolfc.tv man of the match: Jay Spearing