Arsenal's threw away a 2-0 lead as Schalke, with the help of Klaas-Jan Huntelaar and Jefferson Farfans, came from behind to draw the game 2-2 in the Champions League.
Schalke dominated the opening period of the first half and looked like they were continuing from where they left off in their 2-0 win over the gunners at the Emirates a couple of weeks ago.
However, against the run of play, Theo Walcott (18) and Olivier Giroud (26) scored two goals in the space of eight minutes to give the away side a 2-0 lead.
Walcott had missed training on Monday due to an illness making him doubtful for the game, however Arsene Wenger's faith in the 23-year-old was rewarded with Walcott Arsenal's brightest player on the pitch over the 90 minutes.
However, Arsenal gave away a crucial goal in the final minute of rist half stoppage time, Dutchman Huntelaar finishing brilliantly off a Lewis Holtby pass. It was his fourth consecutive goal in his last four appearances.
In the second half, Peruvian Farfan made it 2-2, as the German club maintained their slight lead in the Group B. Schalke have eight points, Arsenal seven points and Olympiakos, who beat Montpellier, have six points.
"I have to give my team compliment for recovering from a two goal deficit," Schalke coach Huub Stevens said. "We reacted brilliantly. Thankfully we scored just before halftime. That was psychologically a big advantage for us."
After Saturday's defeat at the hands of Manchester United, all Wenger wanted was a positive reaction.
"At 2-0 you have not won the game and with the physical quality of the German team it is not over," Wenger said. "They have a lot of quality and they never give up so overall I never felt that the game was over even at 2-0.
"After all the stick we got after Saturday's game it was important to show a good response. We played against a good team and it was a bit unfortunate that we concede a goal just before halftime.
"Look, we lost on Saturday and at least we didn't lose again today," he added.
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