Two superb saves from Chris Weale spoiled Blackpool's first home match at Championship level in 29 years.
Encouraged by their victory at Leicester the previous week, Blackpool played some entertaining football but found Weale in defiant mood when they were well on top in the second half.
Substitute Keigan Parker had only been on the field seconds when he hit a goalbound curler from 30 yards which Weale clawed away from the top corner.
With ten minutes to go in what had been an enthralling encounter, Weale twisted in mid-air to save a point-blank volley from Claus Jorgensen.
It was the first time in 13 league and cup games that Blackpool had been denied victory and City will feel they deserved at least a draw out of the game between two sides promoted together last season.
Blackpool survived an early chance when Marvin Elliott headed over from just 12 yards and, with City determined not to play second fiddle, Paul Rachubka made saves from Brian Wilson and Michael McIndoe.
Blackpool upped the tempo towards half-time with Keith Southern hitting the post with a 20-yard drive and Andy Morrell going close with a cheeky back-heel and scissor-kick.
Morrell made up for those misses in the 49th minute when Blackpool worked a short-corner move which ended up with Southern sending in a piledriver which Morrell flicked past Weale.
City manager Gary Johnson started to make changes with 30 minutes to go and eventually the substitutions started to turn the game in his side's favour.
After Weale's acrobatics, City equalised in the 75th minute after a shot from Lee Trundle was blocked and substitute Scott Murray made no mistake from ten yards out.