Robbie Fowler rediscovered his goal scoring touch to snatch an injury time equaliser for Liverpool at the City Ground.
It was no more than the Merseysiders deserved after dominating the second half despite having defender Phil Babb sent off in the 52nd minute for a foul on Forest midfielder Steve Stone.
It was an intriguing contest between two sides seeking European places next season and Forest struck first though Stan Collymore.
The burly striker netted his 15th goal of the season from close range after Dutch international defender Bryan Roy had prodded the ball past Liverpool keeper David James.
Forest had enough first-half chances to put the game beyond Liverpool's reach and were made to pay for their poor finishing after the break.
Liverpool came to life following Babb's dismissal and Forest keeper Mark Crossley twice had to fling himself full-length to deny Fowler an equaliser.
However, Fowler made no mistake with his third opportunity, sliding a shot past the despairing Crossley after substitute Michael Thomas and Steve McManaman had combined to create the opening.
Liverpool boss Roy Evans was critical of his side after their draw with Nottingham Forest: "I was pleased with our performance for the last 35 minutes but it mystifies me why we couldn't play like that for the entire 90 minutes. In the first half we let Forest have too much of the ball and they punished us with a goal. But the sending off of Phil gave us the kick up the backside we needed. It's unfortunate that it took an incident like that to get us going though."
Forest captain Colin Cooper said: "We're disappointed to have let it slip at such a late stage but we played some great football at times and must take encouragement from that."
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