Paddy Kenny produced a stunning penalty save seconds from time to keep Sheffield United's hopes of a top-two finish intact.
Goal machine Dave Kitson who had bagged his 18th of the season in the opening half, was foiled by the Blades keeper as he pushed his spot kick away.
United's Bruce Dyer had crowned a stunning debut with a ninth minute goal before Kitson hit back in a thrilling clash between the Championship's top two sides.
The Sheffield side snatched the lead as full-back Leigh Bromby picked out Ade Akinbiyi from the right flank with Reading caught cold.
The United striker muscled his way into the box, with the ball falling to Bruce Dyer 12 yards out, who stuck out a foot to steer his shot into the bottom left-hand corner, the ball skimming the woodwork as it crossed the line.
Reading were back on level terms just three minutes later after a slick three-man move and the coolest of finishes from leading scorer Kitson.
Full-back Graeme Murty sparked the move on the left flank picking out Bobby Convey, who cut cleverly inside before picking out Kitson.
The lanky striker, back in the side with Leroy Lita sidelined and Brynjar Gunnarsson suspended, lost his marker as he stepped forward to cleverly deflect the ball past Kenny from ten yards.
Kenny kept out Steve Sidwell's close-range header and minutes later the midfielder had two shots blocked in quick succession as he steamed into the area.
Reading keeper Marcus Hahnemann foiled United by keeping out Akinbiyi's strike after neat work by Chris Morgan and minutes later Phil Jagielka almost had the ball over the line, before substitute Steven Kabba missed a simple chance.
Akinbiyi let Michael Tonge's angled free kick drift by him as Steve Kabba, on for Dyer, blundered hesitating six yards out as Hahnemann deflected the ball round the post.
It seemed Reading would snatch the points when Kenny brought down the lively Convey, but the United keeper kept out Kitson diving to his left to palm the ball away.