Dirk Kuyt fired home from the penalty spot with the final kick of the game as the Gunners title hopes hang in the balance, as they trail leaders Manchester United by six points
The Dutchman's strike came after Robin van Persie has given the hosts the lead in stoppage time, again from the penalty spot, but the visitors refused to lie down despite seeing Jamie Carragher and Andy Carroll substituted through injury.
As a result, Arsenal are now six points behind Manchester United at the top of the Premier League with both having played 32 matches, while, Liverpool remain sixth, four points behind Tottenham having played two games more.
And speaking after the mathc, Dalglish insisted that winning a point with the last kick of the game summed up his team’s efforts.
“I think what they did at the end epitomised the whole performance for the day,” Dalglish told Sky Sports.
“You lose two players through injury [Andy Carroll and Jamie Carragher] and you’ve got two young boys right and left back.
“You’re playing against a team who are going for the title.
“We’ve had to throw Jonjo [Shelvey] on and lost our centre forward - everything was battling against us but they’ve remained convinced and committed to getting something back from the game and I think that’s fantastic credit to them," he added.
“The game wasn’t finished so you’ve got to play on.
“You won’t find a better committed team than what we put out there today.”
Liverpool were forced to sacrifice their record signing with 20 minutes of normal time remaining, following a knee injury which the striker was unable to shake off, and Dalglish admitted that although Carroll could have continued, he did not want to risk the England forward.
“He jarred his knee,” Dalglish continued.
“It was ok but I’d rather not take a chance.
“He’s done magnificently to get back to where he is and we want to make sure he’s there for the remaining games of the season.
Asked whether he thought his side's result had all-but ended Arsenal's title challenge, the Anfield boss said that he feels there are still more twists left in the race for the championship.
“I think there are a few twists and turns before the end of what’s going to happen but it’s out of our control as we don’t have to play either of them - which is a relief," he added.
“We look after ourselves and if anybody else benefits from that then so be it – we were brilliant today.”