Garry O'Connor's equaliser early in the second half gave Blues a terrific point at Premier League leaders Arsenal this afternoon.
Alex McLeish's side became the only the second side this season to prevent the Gunners from collecting maximum points at the Emirates Stadium.
Despite going a goal down to a debatable penalty converted by Emmanuel Adebayor in the first half, Blues clawed their way back.
Arguably this was McLeish's finest performance so far in his short time in charge of the club.
The Blues boss made three changes to the side humiliated at Huddersfield .
Radhi Jaidi was on duty in the African Nations Cup and also dropped were Daniel De Ridder and Gary McSheffrey.
In came Rafael Schmitz, Olivier Kapo and Damien Johnson, playing in a protective face mask.
Arsenal had the first chance of the game after only a minute when Gael Clichy floated the ball into Eduardo but his header was wide of the mark.
Blues were on the back foot early on with Arsenal forcing four corners in the opening minutes. The visitors had Franck Queudrue to thank for one timely challenge on Eduardo.
Arsene Wenger's side continued to dominate and Blues were fortunate to escape without conceding a goal in the 13th minute.
Schmitz was easily dispossessed by Adebayor who raced into the box only to be blocked by the Brazilian who had recovered well.
Blues responded immediately and went agonisingly close to taking the lead.
Kapo's through ball sent Cameron Jerome clear of the defence but his low shot was pushed round the post.
Seb Larsson swung the corner in towards Ridgewell whose header appeared to be blocked by a hand but play on was the decision.
Arsenal were turning on the style and a neat back heel by Adebayor sent Alexander Hleb down the wing. He ran on to cross to Eduardo who headed the ball straight at Maik Taylor who tumbled backwards before collecting the ball.
Arsenal took the lead in the 21st minute through a controversial penalty.
Stephen Kelly appeared to win the ball with a sliding challenge on Eduardo but Mr Dowd saw it differently and pointed to the spot.
Taylor was a fraction away from saving Adebayor's penalty getting his fingertips to it but not enough to push it wide.
Mathieu Flamini was fortunate not to be booked for handball after getting robbed by Larsson but the referee took a lenient view of it.
A minute later Kapo appeared to be bundled over the area when jostling for Larsson's free-kick but again the decision went in favour of the home side.
Kapo was the first man in the book for an innocuous challenge on Fabregas in the 39th minute.
In the latter moments of the half Ridgewell produced a timely block from Fabregas's shot just inside the box
Half-time: Arsenal 1 Blues 0
Blues started the half brightly and amazingly grabbed the equaliser after 48 minutes through O'Connor.
Former Gunner Larsson's corner was met by a firm header by the Scottish international and, after a deflection off Fabregas's foot, nestled in the net.
Arsenal tried to respond straight away and Ridgewell put in another fantastic block this time on Adebayor just inside the box.
The home side continued to press and Maik Taylor made a great save from Senderos's header at the far post.
In the 54th minute Ridgewell and Hleb went in the book after a minor altercation following the Arsenal midfielder's scything tackle on Kelly seconds earlier. The referee could have let it go but chose to book both players.
O'Connor picked up a knock as he was trying to launch a Blues attack but once again Mr Dowd failed to notice any infringement.
It was a tense affair now with Arsenal looking dangerous on every attack but Blues also having a share of the spoils.
On the hour mark another Arsenal attack was finished with a poor shot by Fabregas.
The Blues fans were in fine voice during Queudrue's lengthy treatment which saw the Frenchman replaced by Stuart Parnaby.
Former Blues loan man Nicklas Bendtner replaced Theo Walcott in the 65th minute.
Moments later Eduardo cut open the Blues defence but once again a sea of blue shirts swarmed around the ball to clear the danger.
Arsenal were now trying their luck from long range and Clichy tried a speculative swerving shot that Taylor saved comfortably.
Bendtner had his first shot in the 70th minute but it was a poor one that sailed wide of the target.
It was now a case of backs-to-the-wall and then hoof it as far up the pitch as possible as Blues sought to keep the danger away from their end of the pitch.
Bendtner went a bit closer this time when he latched onto Fabregas's through ball before steering the ball wide.
McLeish made a brave double substitution in the 75th minute taking off goal scorer O'Connor and Jerome. He replaced them with Mikael Forssell and McSheffrey.
Hleb was lucky to stay on the pitch after a lunging tackle on Larsson that left the Swede in pain but fit to continue.
In the 83rd minute Taylor was called into action with another fine save from Flamini's low rasping shot from 20 yards.
Seconds later Abou Diaby replaced Bacary Sagna as Wenger tried to win the game.
The natives were getting restless now with Blues fighting for their lives.
In the last seconds of normal time Hleb burst into the box and fired the ball across the face of goal where thankfully Gallas failed to get anything on it as it flew away to safety.
McLeish's heart was in his mouth when Fabregas fired a rising shot that was inches wide of the upright.
The Blues fans were jumping with delight when the final whistle went after a rollercoaster afternoon's football.
This certainly made up for last week's FA Cup debacle and an unexpected point towards safety.
Muamba and Larsson would have been equally delighted to get a point from their former club.
Full-time: Arsenal 1 Blues 1
Blues: Maik Taylor, Stephen Kelly, Franck Queudrue (61, Stuart Parnaby), Liam Ridgewell, Rafael Schmitz, Seb Larsson, Fabrice Muamba, Damien Johnson, Olivier Kapo, Cameron Jerome (75, Gary McSheffrey), Garry O'Connor (75, Mikael Forssell).
Goals: O'Connor (48)
Bookings: Olivier Kapo (39), Liam Ridgewell (54)
Arsenal: Manuel Almunia, Bacary Sagna (83, Abou Diaby), Gael Clichy, Phillipe Sendersos, William Gallas, Alexander Hleb, Cesc Fabregas, Mathieu Flamini, Theo Walcott (65, Nicklas Bendtner), Emmanuel Adebayor, Eduardo.
Goals: Emmanuel Abebayor (pen, 21),
Bookings: Alexander Hleb (54)
Attendance: 60,037

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