Kevin Phillips and Jermaine Beckford both scored twice as Blackpool and Leicester played out a thrilling draw.
Phillips headed the home side ahead from a corner before Beckford side-footed City level.
David Nugent then headed the visitors in front only for Roman Bednar to curl in for the Seasiders.
Beckford restored Leicester's lead when he converted Ben Marshall's centre, but Phillips would have the final say in the last minute with a calm finish.
The point lifts Blackpool's back into the play-offs, leaving them fifth with 60 points. However, it is getting tight with just three points seperating fourth from ninth.
Leicester's hopes of a late surge into the play-off picture appear all-but over as they are now eight points shy of sixth with nine games remaining.
The Foxes may well feel hard done by having victory snatched from their grasp at the very end of the game, but a defeat would have been very harsh on the home side.
While Leicester twice led after falling behind, their leads were never comfortable ones against an attacking Blackpool side, who regularly tested Foxes keeper Kasper Schmeichel.
And Phillips' late finish gave Ian Holloway's side at least some reward from a supremely entertaining game.
Blackpool boss Ian Holloway on Kevin Phillips: "His game is about positioning and he positions himself in areas where he will get a chance if the ball comes there, he reads it.
"Maybe I'd have to look at why I haven't played him so much. Maybe I should have started him even more, because if he ends the game as strong as that - he's played Saturday and Wednesday - why would I need to take him off?"
Leicester boss Nigel Pearson: "It's another two points thrown away. We've got some serious work to do here, there's no doubt.
"It's all right saying we have scored three and created a load of chances, but at the moment we are leaking goals far too easily.
"We have played some good stuff again, but ultimately the players have got to be prepared to work in both directions and tonight all three goals were avoidable, certainly the two in the second half."