An Aaron Gurd own goal just before halftime and a Clayton Taylor strike in the 72nd minute had the Jets on the threshold of securing a first home win of the season.
But it wasn't to be as, Joe Lolley pulled a goal back in the 78th minute and Anthony Caceres volleyed in an equaliser in the 89th.
The draw lifted Sydney above Central Coast on goal difference into eighth and Newcastle stayed 11th.
Newcastle are winless in their last five league home games stretching back to their victory over Sydney last April.
Just two weeks ago, Sydney scored two late goals to salvage a 3-3 draw away to Adelaide.
The Jets had six shots to two in the first half on Saturday and numerous corners but each team had just one attempt on target.
2-1 down, 89th minute. — Isuzu UTE A-League (@aleaguemen) @SydneyFC need a hero. Up steps Anthony Caceres ON THE VOLLEY 🔵🚀🔥An inspired Sky Blue fightback sealed by a moment of quality from the Socceroos star 🙌 pic.twitter.com/a9FdZ0ooeQJanuary 4, 2025
Taylor finished a surging run with a shot from the edge of the penalty area turned away for a corner by Sydney goalkeeper Harrison Devenish-MearesÂ
Caceres provided Sydney's only first-half attacking spark, having a shot saved and putting another effort wide.
The Jets got around the back of Sydney's defence just before the break and Gurd turned an Eli Adams cross into the six-yard area into his own net.
Sydney showed far more urgency In the first 10 minutes of the second half with Lolley firing in two off-target shots and Adrian Segecic volleying wide.
Taylor looked to have secured the points for Newcastle with a nicely timed run into the six-yard box, sweeping home a perfectly delivered pass from Thomas Aquilina.
Lolley gave Sydney hope with a trademark goal when he cut in from the right and fired a left-foot shot across keeper Ryan Scott into the far corner.
Caceres completed the rescue mission when he scored after Scott made two ineffective punched clearances from a corner.
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