Mitch Pinnock opened the scoring after five minutes for the Cobblers before they were pegged back by an excellent Connor Wilkinson strike for the Saddlers on 50 minutes.
The result leaves Northampton second on 57 points while the result puts Walsall 16th, eight points clear of the drop zone.
Story of the match
Northampton were gifted an early goal when a horrendous pass from Walsall keeper Carl Rushworth gifted the ball to Mitch Pinnock who took full advantage and put the Cobblers one up.
Walsall pushed for an equaliser 10 minutes later and Northampton goalkeeper Liam Roberts was called into action by Joss Labadie who forced Roberts into a terrific save to deny the Walsall man.
Northampton should have had a second just after the half-hour mark when Louis Appere pulled it back to Mitch Pinnock who, with plenty of time, sidefooted his effort straight into the hands of Rushworth.
Little action followed in the closing stages of the half and Northampton went into the break ahead.
Half Time: Northampton Town 1-0 Walsall.
Walsall started the second half the better of the two sides and were level five minutes after the break when Connor Wilkinson found the bottom corner with an excellent left-footed strike on the edge of the area.
The Saddlers should have doubled their lead just after the hour mark when a nicely worked corner found Wilkinsonwho was unmarked and missed the target.
Michael Flynn's side should have taken the lead again moments later when George Miller found himself unmarked from a wide free-kick and headed just wide.
Walsall continued to dominate without creating too many clear-cut chances but it was Sam Hoskins who put in a contender for miss of the season with a minute left of stoppage time when he hit the post with his head from three yards out.
Full time: Northampton Town 1-1 Walsall.
Takeaways from the game
Are Northampton really promotion contenders?
Not many people tipped the Cobblers for a top-three finish at the start of the seasons and after three poor results in the last week their bid for promotion needs to be seriously questioned.
The Cobblers have had consecutive draws against Scunthorpe, Rochdale and Walsall who are all sides they should beat considering their position in the league table.
Their lack of attacking intent and reliance on set pieces in recent times could cost them promotion this season.
Before their win over Colchester United in late February, the Cobblers went seven games without scoring from open play and their lack of creativity on Tuesday against Walsall suggests that the attacking January additions have made little impact so far which could dent their promotion bid.
The Cobblers need to improve going forward if they are to maintain a promotion push until the end of the season.
Connor Wilkinson was the stand out man for Walsall on Tuesday night.
While the striker was wasteful at times he looked sharp for the 75 minutes he had on the pitch and was a massive threat up top for the Saddlers.
Wilkinson took his goal excellently and converted what was arguably his most difficult chance of the game with a powerful left-footed strike on the edge of the area which nestled in the bottom right corner.
Walsall should stay up this season based on their performance on Tuesday and Wilkinson will play a huge part in ensuring survival for the Saddlers.