After taking an early lead Andrea Stramaccioni's men were rescued by the Argentine after falling behind to the Turin side who almost earned a rare win at the Milan outfit's home
Christian Chivu put Andrea Stramaccioni's men ahead after just five minutes with a sweetly-struck free kick but Riccardo Meggiorini levelled in the 23rd minute. With the hosts temporarily down to 10 men as Gaby Mudingayi received treatment, Meggiorini took full advantage by netting his second of the night to give the Granata a shock lead.
The Belgian's replacement, Esteban Cambiasso, changed the momentum of the game and grabbed an equaliser for his side, but it was not enough to take them closer to league leaders Juventus.
Inter set about banishing the disappointment following their Coppa Italia defeat by Roma in midweek by taking an early lead.
In the fifth minute Matteo Brighi went through the back of Antonio Cassano 20 yards from goal and the referee was in no doubt over his guilt. It was Chivu who stepped up to take the free kick and he bent an exquisite effort over the wall and past the diving Jean Gillet.
Torino remained positive and after a fantastic spell of possession in Inter territory, they got their reward midway through the half.
Fredy Guarin was too nonchalant on the ball after receiving a pass from Samir Handanovic and Meggiorini pounced. Barreto then fed the loose ball straight back to his team-mate who rifled the ball into the far corner.
Content with their goal, Giampiero Ventura's men sat back. The Nerazzurri, though, were unable to capitalise as their strikers looked isolated meaning they lacked fluency in the final third.
It was not until the stroke of half time that Stramaccioni's side threatened again. Yuto Nagatomo's cross was deflected into the side netting before a brilliant Danilo D'Ambrosio interception stopped Palacio from testing Gillet from the resulting corner.
Inter had already lost Chivu to injury in the first half, and with Mudingayi off the field receiving treatment their night got even worse.
Alvaro Pereira, who had previously replaced the Romanian, was past by the lively Alessio Cerci and his drilled cross was guided home by Meggiorini eight minutes after the restart.
Cambiasso was subsequently introduced and he galvanised the hosts, linking up particularly well with Antonio Cassano.
After seeing an effort loop over the bar on the hour mark, Cambiasso drew his side level seven minutes later. Javier Zanetti did superbly to charge in behind the defence on the right and his cut-back was swept in by his compatriot at the back post.
The Nerazzurri continued to press but they were leaving themselves exposed at the back and Rolando Bianchi was agonisingly close to putting the visitors back in the lead, but his attempt came back off the post.
Palacio and Meggiorini were both thwarted from finding the winning goal for their sides and a point means that Inter remain in fourth place, nine points adrift of Juventus at the summit.