The Swede has expressed his disbelief following his side's shock 3-3 draw at the Etihad Stadium, despite the Black Cats being two goals ahead with 10 minutes to play
The former Arsenal youngster scored either side of a Nicklas Bendtner header for the Black Cats with Mario Balotelli grabbing a double for City before a late equaliser from Aleksandar Kolarov.
And despite helping his side become the first visitors to avoid defeat at the Etihad Stadium in the league this season, Larsson was unhappy they could not hold on for a win.
"Disappointment is the first word that springs to mind and it's a very disappointed dressing room," he told Sunderland's official website.
"It looked like we were heading for victory. They've had one penalty and two shots outside the box and sometimes you can't do much about it.
"All three of our goals were excellent. The second one was important, coming straight after conceding a penalty which we were unhappy with.”
Larsson admitted that the result would eventually be seen in a positive light, but believes his side's disappointment is a sign of their ambition.
He added: "The fact that Manchester City had won 20 straight home league wins and we're disappointed to leave today with a point says something about our performance.
"We'll probably be happy with the performance in a couple of days, but right now we're really disappointed.
"No other team has got points here this season so we must have done something okay."
Larsson’s team-mate Phil Bardsley praised fellow defender Matt Kilgallon for his performance at the Etihad Stadium.
The former Leeds man made a rare first-team start and produced a spectacular display before hobbling off with cramp 10 minutes from time.
Bardsley said: "He's waited for an opportunity after hurting his ankle at Chelsea and now he's come back and it's like he's never been away. It's not easy to come back and slot straight in against the top players City have.
"He was fantastic. We need players like him who can come in and do a great job for us. He was outstanding today."