An Ian Hume penalty appeared to have been enough to make it a winning start for Gary Megson in his first game as Leicester manager, but any celebrations in the City camp were cut short late on and poor defending allowed Rangers to score and escape with a point.
The Foxes dominated most of the first hour before the stalemate was finally broken on 63 minutes when they were awarded a penalty after Damion Stewart had clearly tripped Dudley Campbell inside the box with Hume scoring from the penalty spot after sending the keeper the wrong way.
But City paid the price for allowing their guard to drop on 82 minutes when Mikele Leigertwood was allowed the time and space to control a loose ball before unleashing a right-foot shot from 25 yards which flew low into Marton Fulop's left-hand corner.
City had started brightly enough with Campbell's header from Alan Sheehan's cross drawing a smart save from Lee Camp.Stephen Clemence then drove a free-kick straight at the keeper and Carl Cort shot wide from 18 yards as the home side dominated.
But five minutes before the break it was Rangers that went closest to breaking the deadlock when Martin Rowlands delivered a quality free-kick into the area for Ben Sahar to shave the outside of the post with a glancing header.
Then just before half-time Campbell broke clear and rounded the keeper only to be foiled by Danny Cullip who had raced back to clear off the line.Levi Porter squandered a good chance shortly after the restart when he side-footed wide at the far post before City finally broke through with Hume's penalty.
They then enjoyed plenty of possession which they failed to convert into goals, and after Leigertwood had equalised for the Londoners, they almost lost their way completely with the visitors threatening to grab an unlikely win.