Haris Vuckic scored for Rangers in their Tuesday night Scottish Championship clash, but his goal was no enough to hand them victory.
A determined performance from Queen of the South saw them fight back and earn a 1-1 draw and frustrate Rangers in front of a crowd of more than 35,000.
The goal was Vuckic's first league strike since signing on loan, and second goal overall, netting in the cup defeat to Raith Rovers last month.
Caretaker boss Kenny McDowall told Rangers' official website: "Harris has been fantastic, he is settling in and getting to know the boys better and as you can see he is contributing well on the field.
“It’s fantastic to see the stadium full again and we’re just disappointed we couldn’t see the game out and get the three points to send them home happy.”
Rangers conceded just four minutes from time to drop two points, and pick up just one on second place Hibernian instead of the three needed to draw level.
They still have a game in hand, but with three consecutive draws, nothing is to be taken for granted. Rangers have won just one of their last seven games in all competitions, and are 22 points behind Scottish Championship leaders Hearts.