Arsenal had their advantage at the top of the Premier League cut after Joe Allen's late equaliser gave Liverpool a deserved point in an Anfield thriller.
Olivier Giroud's second-half strike - his second of the night and 18th of the season - looked to have put the Gunners on course for a crucial victory, but substitute Allen rewarded the hosts for a display bursting with energy and spirit with a low 90th-minute finish.
Roberto Firmino twice gave Liverpool the lead in a breathless first half, the second a spectacular 20-yard drive, but Arsenal took advantage of poor defending from Jurgen Klopp's side to level through Aaron Ramsey and Giroud.
Giroud also missed an open goal in the first half, while Firmino struck the bar in a wide open game.
With 10 minutes remaining, Arsenal's lead at the top of the table was four points. Yet Robert Huth's late winner for Leicester City at Tottenham and Allen's late strike left Arsenal only ahead of the Foxes on goal difference.
Relive the drama from Anfield
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The visitors looked to have finally established supremacy in this topsy-turvy encounter when Giroud turned to put them ahead 10 minutes after the break - but then failed to press home the advantage and paid a heavy price.
And it will be a matter of concern to Arsenal manager Arsene Wenger that on nights like this at places like Anfield, they did not show the necessary ruthlessness to close out a game that was within their grasp.
The Reds deserve great credit for the way they responded to the disappointment of going behind after leading twice - but Arsenal showed no assurance or authority when the pressure mounted in the closing stages and there was an inevitability about Allen's equaliser.
Arsenal, when they should have been pressuring a desperately poor and under-strength Liverpool defence, instead allowed themselves to be pushed back. This was two points lost and Klopp will be the much happier manager.
For such a regular goalscorer, Giroud remains a maligned figure by some Arsenal fans who regard him as just short of the highest class - and yet his strike rate speaks eloquently on his behalf.
He showed a poacher's instinct to touch home his first from Ramsey's corner then showed good awareness and movement to turn Kolo Toure and score his second.
And yet those who remain unconvinced by Giroud will point to his astonishing first-half miss when he somehow failed to convert Hector Bellerin's pass from a matter of inches in front of the Kop.
Here, though, he demonstrated again that he will get goals and that is the best answer he can give to those who still doubt the France striker's pedigree.
Liverpool keeper Simon Mignolet is poised to sign a new five-year contract at Anfield and has won the consistent backing of manager Klopp despite his fragile form.
And yet he was once again a very obvious weakness behind a Liverpool defence that was an accident waiting to happen for large portions of this enthralling game.
The 27-year-old Belgian was beaten too easily inside his near post when Ramsey equalised after Firmino's opener, then was hopelessly stranded as Giroud's faint touch allowed a corner to sneak in. It was desperately poor keeping.
For all Klopp's public assurances - he would not do otherwise - he must surely be concerned at Mignolet's obvious frailty, alongside the glaring inadequacy of his deputy Adam Bogdan, as proved by his errors at Watford and Exeter City.
Liverpool have recalled 22-year-old Welsh keeper Danny Ward from a successful loan spell at Aberdeen so he is now in the mix - but Klopp has to consider a more reliable, experienced long-term solution after Mignolet's latest blunders.
Liverpool manager Jurgen Klopp: "We started so good and played good football. It showed all of us how good we could be.
"Then we concede a goal from a set play and we have to work at it. Organisation is one thing and sometimes we have a little problem with concentration.
"We gave them two easy goals after we had to work really hard for our goals. We had many moments which I am happy with."
Arsenal manager Arsene Wenger: "I'm very disappointed but, overall, I cannot fault the effort and commitment of the team.
"We had a difficult start. At 3-2, we should have made it 4-2 and didn't make the right decision in the final third.
"Liverpool fought until the last second."
Liverpool don't have long to recover before they entertain fierce rivals Manchester United on Sunday (14:05 GMT). Arsenal's next game is a trip to Stoke, where they have failed to win on their past five Premier League visits, on Sunday (16:15 GMT).
Full Time Match ends, Liverpool 3, Arsenal 3.
90:00 +3:04 Full timeFull Time Second Half ends, Liverpool 3, Arsenal 3.
89:36 Goal scoredGoal! Goal! Liverpool 3, Arsenal 3. Joe Allen (Liverpool) right footed shot from the centre of the box to the bottom left corner. Assisted by Christian Benteke with a headed pass.
89:15Attempt blocked. Alberto Moreno (Liverpool) left footed shot from outside the box is blocked.
88:22Nathaniel Clyne (Liverpool) wins a free kick in the attacking half.
88:22Foul by Laurent Koscielny (Arsenal).
87:42Roberto Firmino (Liverpool) wins a free kick in the defensive half.
87:42Foul by Mikel Arteta (Arsenal).
87:08 SubstitutionSubstitution Substitution, Liverpool. Steven Caulker replaces Adam Lallana.
86:23 SubstitutionSubstitution Substitution, Arsenal. Mikel Arteta replaces Mesut Özil.
85:26Corner, Liverpool. Conceded by Mathieu Flamini.
85:22Attempt blocked. Jordon Ibe (Liverpool) left footed shot from outside the box is blocked. Assisted by Joe Allen.
82:54Offside, Liverpool. Nathaniel Clyne tries a through ball, but Roberto Firmino is caught offside.
81:45Offside, Arsenal. Olivier Giroud tries a through ball, but Kieran Gibbs is caught offside.
81:32 SubstitutionSubstitution Substitution, Liverpool. Joe Allen replaces Emre Can.
80:47Foul by Mamadou Sakho (Liverpool).
80:47Olivier Giroud (Arsenal) wins a free kick in the attacking half.
79:07Attempt blocked. Christian Benteke (Liverpool) right footed shot from the centre of the box is blocked. Assisted by Jordan Henderson.
78:23Corner, Liverpool. Conceded by Kieran Gibbs.
77:57Corner, Liverpool. Conceded by Per Mertesacker.
Nathaniel Clyne (Liverpool) wins a free kick in the defensive half.
76:48Foul by Mathieu Flamini (Arsenal).
75:44Corner, Liverpool. Conceded by Per Mertesacker.
75:39Attempt blocked. Adam Lallana (Liverpool) right footed shot from the centre of the box is blocked. Assisted by Emre Can.
75:06 SubstitutionSubstitution Substitution, Arsenal. Kieran Gibbs replaces Theo Walcott.
74:50 SubstitutionSubstitution Substitution, Arsenal. Alex Oxlade-Chamberlain replaces Joel Campbell.
74:18Attempt missed. Alberto Moreno (Liverpool) left footed shot from the left side of the box is too high. Assisted by Adam Lallana.
73:24Attempt saved. Christian Benteke (Liverpool) right footed shot from the left side of the box is saved in the centre of the goal. Assisted by Adam Lallana.
70:17Attempt blocked. Alberto Moreno (Liverpool) left footed shot from outside the box is blocked.
69:11Foul by Nathaniel Clyne (Liverpool).
69:11Joel Campbell (Arsenal) wins a free kick on the left wing.
68:29Attempt missed. Roberto Firmino (Liverpool) header from the centre of the box is close, but misses to the right. Assisted by Alberto Moreno with a cross following a corner.
68:17Corner, Liverpool. Conceded by Joel Campbell.
68:08Attempt blocked. Alberto Moreno (Liverpool) left footed shot from outside the box is blocked.
67:43Corner, Liverpool. Conceded by Nacho Monreal.
67:41Attempt blocked. Roberto Firmino (Liverpool) header from the centre of the box is blocked. Assisted by Alberto Moreno with a cross.
65:53 SubstitutionSubstitution Substitution, Liverpool. Christian Benteke replaces James Milner.
65:30Attempt missed. Jordan Henderson (Liverpool) right footed shot from outside the box misses to the right. Assisted by Emre Can with a headed pass.
63:33Foul by Jordon Ibe (Liverpool).
63:33Nacho Monreal (Arsenal) wins a free kick in the defensive half.
62:26Attempt blocked. Olivier Giroud (Arsenal) left footed shot from the centre of the box is blocked. Assisted by Joel Campbell.
60:58Attempt blocked. James Milner (Liverpool) right footed shot from the left side of the box is blocked. Assisted by Adam Lallana.
59:49Attempt blocked. Jordon Ibe (Liverpool) right footed shot from the right side of the box is blocked.
58:21Corner, Liverpool. Conceded by Joel Campbell.
57:46Attempt missed. Theo Walcott (Arsenal) right footed shot from the left side of the box misses to the right. Assisted by Aaron Ramsey.
57:33Attempt blocked. Mesut Özil (Arsenal) left footed shot from outside the box is blocked.
56:49Foul by Emre Can (Liverpool).
56:49Joel Campbell (Arsenal) wins a free kick in the attacking half.
56:00Delay over. They are ready to continue.
55:47Delay in match James Milner (Liverpool) because of an injury.
54:27 Goal scoredGoal! Goal! Liverpool 2, Arsenal 3. Olivier Giroud (Arsenal) left footed shot from the centre of the box to the bottom left corner.
53:21Attempt missed. Olivier Giroud (Arsenal) header from the centre of the box misses to the left. Assisted by Mesut Özil with a cross following a set piece situation.
52:28 BookingBooking Nathaniel Clyne (Liverpool) is shown the yellow card for hand ball.
52:23Hand ball by Nathaniel Clyne (Liverpool).
50:47Attempt missed. Theo Walcott (Arsenal) right footed shot from outside the box is close, but misses to the left. Assisted by Nacho Monreal.
49:30Foul by Emre Can (Liverpool).
49:30Theo Walcott (Arsenal) wins a free kick in the defensive half.
48:12Jordan Henderson (Liverpool) wins a free kick in the defensive half.
48:12Foul by Olivier Giroud (Arsenal).
47:32Attempt missed. Alberto Moreno (Liverpool) left footed shot from the left side of the box is high and wide to the right. Assisted by Roberto Firmino.
45:29Attempt missed. Joel Campbell (Arsenal) right footed shot from the centre of the box is high and wide to the left. Assisted by Mesut Özil with a cross.
45:00Second Half begins Liverpool 2, Arsenal 2.
45:00 +3:00 Half timeHalf Time First Half ends, Liverpool 2, Arsenal 2.
45:00 +1:39Roberto Firmino (Liverpool) hits the bar with a left footed shot from the centre of the box.
45:00 +0:49Attempt saved. Emre Can (Liverpool) right footed shot from outside the box is saved in the top right corner. Assisted by James Milner.
43:28Offside, Arsenal. Per Mertesacker tries a through ball, but Olivier Giroud is caught offside.
42:17Corner, Arsenal. Conceded by Mamadou Sakho.
42:14Attempt blocked. Theo Walcott (Arsenal) right footed shot from outside the box is blocked. Assisted by Nacho Monreal.
40:59Offside, Arsenal. Mathieu Flamini tries a through ball, but Olivier Giroud is caught offside.
35:07Offside, Arsenal. Nacho Monreal tries a through ball, but Olivier Giroud is caught offside.
34:30Foul by Jordan Henderson (Liverpool).
34:30Joel Campbell (Arsenal) wins a free kick in the defensive half.
32:59Corner, Arsenal. Conceded by Mamadou Sakho.
32:56Attempt blocked. Joel Campbell (Arsenal) left footed shot from the right side of the box is blocked.
29:36Attempt missed. Emre Can (Liverpool) right footed shot from outside the box is too high. Assisted by Roberto Firmino.
28:38Attempt saved. Joel Campbell (Arsenal) left footed shot from the right side of the box is saved in the bottom left corner. Assisted by Mesut Özil.
27:47Attempt missed. Olivier Giroud (Arsenal) left footed shot from very close range misses to the right. Assisted by Theo Walcott.
24:42 Goal scoredGoal! Goal! Liverpool 2, Arsenal 2. Olivier Giroud (Arsenal) left footed shot from the left side of the six yard box to the centre of the goal. Assisted by Aaron Ramsey with a cross following a corner.
24:14Corner, Arsenal. Conceded by Mamadou Sakho.
24:12Attempt blocked. Aaron Ramsey (Arsenal) right footed shot from the centre of the box is blocked. Assisted by Olivier Giroud with a through ball.
22:56Mamadou Sakho (Liverpool) wins a free kick in the defensive half.
22:56Foul by Olivier Giroud (Arsenal).
20:04Offside, Liverpool. Jordan Henderson tries a through ball, but Alberto Moreno is caught offside.
20:01Emre Can (Liverpool) wins a free kick in the attacking half.
20:01Foul by Aaron Ramsey (Arsenal).
18:52 Goal scoredGoal! Goal! Liverpool 2, Arsenal 1. Roberto Firmino (Liverpool) right footed shot from outside the box to the top right corner. Assisted by James Milner.
16:51Foul by Roberto Firmino (Liverpool).
16:51Mathieu Flamini (Arsenal) wins a free kick in the defensive half.
15:50Corner, Liverpool. Conceded by Theo Walcott.
15:18Delay over. They are ready to continue.
14:30Delay in match Olivier Giroud (Arsenal) because of an injury.
13:27 Goal scoredGoal! Goal! Liverpool 1, Arsenal 1. Aaron Ramsey (Arsenal) right footed shot from the centre of the box to the bottom right corner. Assisted by Joel Campbell with a through ball.
12:56Offside, Liverpool. Jordan Henderson tries a through ball, but Adam Lallana is caught offside.
9:43 BookingBooking Roberto Firmino (Liverpool) is shown the yellow card for excessive celebration.
9:06 Goal scoredGoal! Goal! Liverpool 1, Arsenal 0. Roberto Firmino (Liverpool) left footed shot from the centre of the box to the bottom right corner following a corner.
9:04Attempt saved. Emre Can (Liverpool) right footed shot from outside the box is saved in the bottom right corner. Assisted by James Milner.
8:30Corner, Liverpool. Conceded by Joel Campbell.
7:47Offside, Liverpool. Emre Can tries a through ball, but James Milner is caught offside.
6:53Attempt blocked. Nathaniel Clyne (Liverpool) right footed shot from outside the box is blocked.
3:03Offside, Arsenal. Mesut Özil tries a through ball, but Theo Walcott is caught offside.
0:49Foul by Alberto Moreno (Liverpool).
0:49Joel Campbell (Arsenal) wins a free kick in the defensive half.
0:21Foul by Olivier Giroud (Arsenal).
0:21Emre Can (Liverpool) wins a free kick in the defensive half.
0:00First Half begins.
0:00Lineups are announced and players are warming up.
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