A deflected Leigh Griffiths shot in the 77th minute earned First Division leaders Dundee a point they scarcely deserved in a pulsating encounter at Palmerston.
There was early drama as the visitors spurned a chance to take an early lead when Gary Harkins' penalty was parried to safety by Queens goalkeeper David Hutton.
Moments later Palmy erupted when Queens took the lead moments later through an excellent Robert Harris free-kick.
Queens with new signing Knight prominent dominated for the rest of the half and could have been several goals to the good but for bad finishing and an inspired display by Douglas in the Dundee goal.
Queens McLaren hit the post and Douglas brought off save after save as the Doonhamers pressed for the vital second goal.
Queens were made to pay as Griffiths equalised on 77 minutes after his weak shot hit Harris and rolled over the line past Hutton in the Queens goal.
The last few minutes were hectic as both teams went for a winner but it eventually ended all square with the Doonhamers desperately unlucky not to have secured three points.
This result is a big blow to Queens title hopes but there is a lot of football still to be played until the Spring.
Queens Mad Man of the Match - New signing Leon Knight is a right pocket dynamo and led the Dundee defence a merry dance and was unlucky not to get on the scoresheet.