Matt Richards' volley had given the Saddlers a half-time lead but Peter Leven levelled with a cheeky penalty to stretch the Dons' unbeaten run to eight games.
Sam Baldock scuffed a good early chance straight at Saddlers keeper Jimmy Walker, who then produced a good diving save to keep out Daniel Powell's low drive.
But Walsall were dangerous on the break, David Martin denying Emmanuel Ledesma and Julian Gray before Richards capped a swift counter-attack to put them ahead after 29 minutes.
Ledesma robbed Peter Leven of possession on the halfway line before playing in Gray and, when his shot was parried by Martin, Richards was on hand to volley in the rebound.
Ledesma and Richards then had long-range strikes pushed wide by Martin, while Dons forward Powell blazed over from 10 yards on the stroke of half-time.
Leven equalised for the Dons from the penalty spot six minutes into the second half, cheekily dinking the ball down the middle after Luke Chadwick had been tripped by Manny Smith.
Gray then blasted a 25-yard drive against the crossbar for Walsall, while Baldock was denied one-on-one by Walker and substitute Angelo Balanta somehow hit the bar from four yards late on for the Dons.
Milton Keynes Dons 1-1 Walsall: Match Report - view commentary, squad, and statictics of the game as it happened.