The Iron were forced to come from behind and then almost held on for all three points but for former player Billy Sharp's penalty five minutes from time.
Chris Basham slotted the Blades ahead following a well-worked free kick before Josh Morris smashed home the leveller in the second half. Basham was then dismissed for serious foul play before Duane Holmes netted his first goal for the club from outside the area.
Moments later though, Sharp converted a penalty won by substitute Stefan Scougall to earn a share of the spoils.
To view extended highlights of the game on The Iron PlayerHD, click here.
Click here to view both of the Iron's goals from the camera situated behind the goal.
Following the game, Graham Alexander praised his players for their second half performance and spoke of the very competitive derby.
To view the Iron boss' full interview on The Iron PlayerHD,click here.
Following the game, the club spoke to Richie Smallwood, making his first Iron start and Duane Holmes, who netted his first Scunthorpe goal.
To view Richie Smallwood's full interview on The Iron PlayerHD, click here.
To view Duane Holmes' thoughts following the encounter, click here.
You can view a full gallery of the game, presented by photographers Simon Wright, Luke Broughton and Steve Hope by clicking here or on the image below.
EQUALISER: Josh Morris celebrates as he smashed the Iron level at Glanford Park on Saturday.
Rochdale moved away from the bottom of Sky Bet League One with an impressive 3-2 win away at Millwall, which took the Result of the Day honours in the EFL.
Despite taking the lead early on, Dale found themselves behind at the break. An equaliser came from Calvin Andrew on 67 minutes, and then the winner was scored from the penalty spot in the third minute of added time by Ian Henderson.
Leaders Scunthorpe United were held to a draw at home by 10-man Sheffield United. A penalty from Blades skipper and former Iron front-man Billy Sharp made it 2-2 and snatched a point for the Blades.
Northampton Town got back to winning ways with a 4-0 home victory over Southend, with the visitors having a man sent off. It was the perfect response from the Cobblers following the end to their 31-game unbeaten run last time out.
Ryan Colclough netted a hat-trick for MK Dons as they stormed to a 4-1 triumph over Uwe Rosler's Fleetwood Town. It was the Dons' first win in four, and Fleetwood's second successive defeat.
Elsewhere, Bradford, Charlton and Walsall all picked up draws away from home, and Swindon Town defeated Oldham at Boundary Park.
AFC Wimbledon 1-1 Shrewsbury Town
Bolton Wanderers 0-0 Bradford City
Bristol Rovers 2-1 Port Vale
Bury 2-1 Chesterfield
Fleetwood Town 1-4 Milton Keynes Dons
Gillingham 2-1 Coventry City
Millwall 2-3 Rochdale
Northampton Town 4-0 Southend United
Oldham Athletic 0-2 Swindon Town
Oxford United 1-1 Charlton Athletic
Peterborough United 1-1 Walsall
Bradford City v Fleetwood Town
Charlton Athletic v Oldham Athletic
Chesterfield v Gillingham
Milton Keynes Dons v Bury
Port Vale v Millwall
Rochdale v Bolton Wanderers
Sheffield United v Bristol Rovers
Shrewsbury Town v Peterborough United
Southend United v Oxford United
Swindon Town v Northampton Town
Walsall v Scunthorpe United
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