Dunfermline lost more ground on leaders St Mirren after being held by Queens at rainswept Palmerston.
Queens will feel they did enough to clinch all three points but their winless league run has been extended to five games.
Dunfermline fashioned an opening in the 13th minute with Nicky Clark guiding Callum Smith’s cross into the side netting.
Queens could have broken the deadlock but ex-Scotland international James McFadden volleyed wide after Connor Murray’s cross was flicked on into his path.
The home side continued to create chances with midfielder John Rankin firing across the face of goal before a Stephen Dobbie drive was well saved by Pars keeper Sean Murdoch.
Gary Naysmith’s side were on top early in the second half and Murdoch was called into action again to block from Callum Fordyce.
The Fifers were denied what would have been an undeserved last-minute winner when sub Callum Tapping cleared Lee Ashcroft’s header off the line.