A minute’s silence was observed before kick-off for John Charles, whose funeral is being held in Leeds tomorrow. The club has re-named its West Stand after the former Leeds, Juventus and Wales centre forward in tribute.
Leeds stay bottom with 22 points, one point behind fellow relegation candidates Portsmouth and Leicester City.
Liverpool remain sixth on 39 points, two behind fourth-placed Newcastle United, who are in action at Portsmouth.
Harry Kewell showed Leeds what they are missing with a superbly struck goal on his return to Elland Road, but Liverpool had to be content with a point.
While Leeds remain rooted to the foot of the Premiership table they have now gone three games unbeaten and showed enough battling qualities to give their fans hope.
An impeccably observed minute's silence in memory of John Charles was held before the kick-off of Leeds' first home game since the 'Gentle Giant' died just over a week ago, aged 72.
Unchanged Liverpool were looking to build on their UEFA Cup win over Levski Sofia in midweek, while Leeds welcomed back keeper Paul Robinson and striker Mark Viduka.
Liverpool took a 21st minute lead with Kewell's second spectacular goal in a matter of days.
Kewell, booed by Leeds fans every time he was involved, gave the perfect response by lashing the ball into the far corner of the net from the right corner of the penalty box.
Leeds equalised eight minutes later with Eirik Bakke's first Premiership goal since New Year's Day, 2003.
Alan Smith nodded down Didier Domi's cross from the left and from Jermaine Pennant's pass, Bakke prodded the ball past Chris Kirkland.
Although Liverpool passed the ball with greater precision and purpose, Leeds took a 34th minute lead. Viduka found Smith who lobbed the ball into the goalmouth for Viduka to flick over Kirkland as the keeper was slow to leave his line. It was just what the big-man needed after missing a far simpler chance prior to Kewell opening the scoring.
Leeds, though, couldn't relax for a second and the equaliser arrived on 42 minutes, Milan Baros sprinting away from Domi and Seth Johnson before shooting powerfully past Robinson.
Leeds replaced the injured Bakke with Stephen McPhail at the start of the second half.
After the break both teams continued to press for the win - Alan Smith shaved the far post with an acute angled shot and then his header hit the bar, while a subdued Michael Owen was denied by Paul Robinson's superb save.
Robinson made another magnificent save to deny the out of touch Owen and a third to claw away substitute Emile Heskey's header.
Then, in front of the watching Sven-Goran Eriksson, he produced the save of the game in the 87th minute as he was at full stretch to tip away a rising, yet goal-bound Dietmar Hamann drive from 30-yards.
Domi's header was cleared off the line by Jamie Carragher in injury time but the points were deservedly shared.