Kylian Mbappe scored a controversial late penalty to deny Newcastle an impressive win at Parc des Princes but the draw keeps the visitors in the fight to reach the Champions League knockout stages.
The spot-kick was awarded after review by the video assistant referee, with referee Szymon Marciniak consulting the pitchside monitor before ruling Tino Livramento had handled the ball inside the box when blocking a cross.
It was a cruel blow for Eddie Howe's side, who had looked on course to secure a hugely impressive win after Aleksander Isak struck in the first half when Miguel Almiron's effort had been pushed to the striker's feet.
Newcastle then defended with everything they had to keep out PSG and Nick Pope made a superb save from close range to deny first Bradley Barcola and then Kylian Mbappe, who drove the rebound just wide.
But the visitors' resolve was broken deep in stoppage time when PSG were awarded the penalty, from which Mbappe made no mistake.
The result means Newcastle are third in Group F, two points behind second-placed PSG.
Eddie Howe's side now need to beat AC Milan in their final group game and hope already qualified Borussia Dortmund avoid defeat against PSG.
Tino Livramento was adjudged to have handled the ball when blocking a cross
The finish to this game will have been devastating for Newcastle after they had put in a brilliant display of fight and bravery to keep out the hosts for 97 minutes.
Howe's side had arrived in Paris impacted by a lengthy injury list as they named two goalkeepers on their bench alongside four teenagers.
But those who played gave everything and more as they came within seconds of another huge result on their Champions League return.
They rode their luck at times, with Mbappe and Barcola both missing some big opportunities, and it looked like it was going to be Newcastle's night.
But in the last minute of eight added on in stoppage time, Ousmane Dembele's cross struck the chest of Livramento - who had been excellent throughout - and the ball bounced up onto his arm.
Referee Marciniak had earlier dismissed a similar penalty claim for an Anthony Gordon challenge inside the box, but this time decided to award the spot-kick as Mbappe rescued his side.
But the decision seemed harsh on Newcastle and the result means progress to the last 16 is now not in their hands.