The Blades looked to have sealed the south Yorkshire bragging rights after first-half goals from Stephen Quinn and Ched Evans put the hosts in the driving seat.
But two goals in the last ten minutes from Chris O'Grady and Gary Madine's header in the 86th minute meant the points were shared.
Stunner: Wednesday players go wild after Madine's late equaliser
MATCH FACTSSheff Utd: Simonsen, Lowton, Maguire, Collins, Williams,Williamson (M Phillips 68), Montgomery, McDonald, Quinn, Evans (Porter 84), Cresswell.
Subs not used: Long, Jean-Francois, Clarke.
Booked: Williamson, Evans, Cresswell
Goals: Quinn (11), Evans (20).
Sheff Wed: Bywater, Buxton, Batth, Rob Jones, Reda Johnson,Marshall, Lines, Semedo, O'Connor (Johnson 46), Madine, O'Grady.
Subs: O'Donnell, Bennett, Prutton, Palmer.
Booked: Buxton, Johnson
Goals: O'Grady (82), Madine (86)
Referee: Michael Oliver (Northumberland)
This was the 126th staging of the Sheffield derby, but only the first time it has been played in the third tier of English football in 31 years.
And former Wednesday boss Danny Wilson must have been dreaming of getting one over his former charges after watching his side race into and early lead.
United were two-up after Stephen Quinn found the top corner, before Ched Evans headed the second from Lee Williamson's cross.
And heading into the final ten minutes, the Blades' faithful must have been dreaming of having the bragging rights until the two sides meet again in February. But it wasn't to be.
Ben Marshall teed up Chris O'Grady to pull one back in the 82nd minute and in a tumultous final few minutes, Owls' top scorer this season Gary Madine leapt to nod home the late leveller and send the travelling hordes into raptures.
Good Evans! United celebrate bagging their second goal
The point wasn't what either side wanted to maintain their promotion push, but they both move up the League One table.
Wednesday remain in third place while United leap two places from ninth to seventh, just one spot outside the play-off places.
Stunning start: United found themselves two-up inside 20 minutes
Fiery encounter: Neither side conceded an inch in the Sheffield derby
Heads I win: Evans nods home the hosts second
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