Midfielder James Harper snatched a dramatic injury-time equaliser for Reading after they had taken an early lead only to see Burnley go in front midway through the second half.
Reading began the game needing three points to climb into a play-off position and they looked to be well on their way when Lloyd Owusu put them in front after 19 minutes.
He latched on to a poor back header from Mo Camara to roll the ball into an empty net.
Camara was left to face the wrath of keeper Brian Jensen who had seen his effort sail over his head.
But Burnley were only in arrears for four minutes before the lively Ian Moore hit a close-range equaliser.
Burnley, who had previously gone five games without defeat, were full of confidence and made it clear in the second half that they had no intention of settling for a point.
They continued to press forward and gain their reward in the 69th minute.
Robbie Blake took a right-wing corner which sailed across a crowded penalty area to substitute Bradley Orr.
He fired the ball low into a crowded goalmouth where David May stabbed it past stranded Reading keeper Marcus Hahnemann.
Reading boss Steve Coppell decided to go all-out on attack when he brought on substitutes Dean Morgan, Dave Kitson and Scott Murray.
His efforts looked as if they had come to no avail when Owusu hit the crossbar late in the game.
The fourth official signalled four minutes of injury time and with just two minutes left Harper fired one in from close range to grab Reading the point that keeps them in eighth position.
Last week Reading manager Coppell announced that he had money to spend on new players and he looks like he is about to splash out for Crystal Palace defender Darren Powell.
It was announced that Reading and Palace had agreed a fee and the player will now discuss personal terms.