Rangers failed to build on their impressive win over the Old Firm as Hibs fought back to salvage a draw and continue their unbeaten run in the Premier League.
It was the perfect start for Philippe Clement's side, with Hamza Igamani putting the team ahead in the first four minutes before scoring a powerful second goal as they dominated the early stages.
Hibs began to find some rhythm and Martin Boyle slotted the ball home from the edge of the box before equalizing from the penalty spot after Josh Campbell was brought down by Ianis Hagi.
In what Sky Sports' Chris Sutton described as a “crazy play”, Igamane thought he had made a save when he sent Vaclav Cerny's low shot into the net to complete his hat-trick.
But there were two more times as Rocky Bushiri's header brought Hibs back level and then squandered late chances to take all three points.
David Gray's side are now unbeaten in six games while Rangers remain second, 10 points behind Celtic.
Inconsistency is costing the Rangers once again
Despite the Old Firm side's euphoria in the Ibrox derby, Rangers have now dropped points in each of their last three away games, wasting the opportunity to put real pressure on their city rivals at the top of the Premier League.
Hibs made one change to the side from Thursday's 1-1 draw with St Johnstone with Dwight Gayle replacing Junior Hoilett in attack, with captain Joe Newell and striker Eli Yoane again sidelined through injury.
The visitors were unchanged from the side that started the derby with goalkeeper Liam Kelly once again substituted for Jack Butland, who continues his recovery after being admitted to hospital with internal bleeding in his leg.
Hibs got off to a nervy start and were punished for their complacency in the fourth minute when Ijamane headed home Ianis Hagi's neat cross from the left after Bushiri had been tangled while trying to handle a ball behind Ijamane.
Bushiri made a better fist of Rangers' next chance when he stood firm to keep out Nadim Bajermi's effort from behind after the Albanian cut dangerously down the left.
The hosts were struggling to contain the visitors early and Hyukyu Kwon did enough to turn Igamani's shot back after Mohamed Diomandi had set up the Moroccan outside the six-yard box.
Bajrami and Vaclav Cerny saw powerful shots from corners by Jordan Smith in quick succession before the Ibrox side's pressure led to a second goal in the 19th minute. Bajrami's cross from the left flank rebounded to the unmarked Ijamane, and the Moroccan's header rose from seven yards out wide. From Smith, who shot the ball with his hand but was unable to clear it.
At that point, it looked as if Rangers were on the verge of victory as Hibs – in mild disarray – looked unable to get a foothold.
But the hosts pulled a goal back in the 32nd minute when Jack Iredale took a free kick into the penalty area, helped by Lewis Miller and Josh Campbell into the danger zone, and Bushiri then cleverly put the ball into the path of Boyle, who fired a low shot into the net. From 12 yards.
Remarkably, the scores were level on the hour when Campbell was fouled by Hagi as he attempted to run to receive a Gayle pass, and Puel made no mistake.
Hibs suddenly raised their tails and looked the side most likely to take the lead, with Miller seeing a ferocious shot pushed by Kelly before the Australian defender headed home the inside of the post shortly afterwards.
Gers coach Philippe Clement – clearly concerned by what he was seeing – made a triple substitution in the 70th minute as Hagi, Bajrami and the injured Dogon Sterling were replaced by Danilo, Oscar Cortés and Leon King.
Four minutes later, the visitors restored the lead when Igamani scored after a pass from Cerny.
However, Bushiri – as he did when he scored a last-gasp equalizer in a 3-3 home draw with Aberdeen in November – had the final say when he headed home Nicky Cadden's corner kick.