Alloa controlled play in the opening minutes and had the Arbroath defence under pressure as they conceded six corners in the opening 12 minutes.
Alloa had a golden chance to open their account in the 14th minute when Ross Hamilton was on hand to collect a Brown Ferguson pass, but his hard 12-yard shot was cleared for a corner.
Ian Ross came close in the 21st minute, but his shot was saved by Craig Coyle in the Arbroath goal.
Arbroath fought their way back into the match and were rewarded for their efforts when Chris McLeod outjumped a static Wasps defence to head home Arbroath's opener from a Gavin Swankie corner in the 24th minute.
Seven minutes later Arbroath extended their lead when Iain Diack latched on to a Swankie clearance, ran at the Alloa defence and neatly lobbed the ball over the head of Alloa keeper James Evans, who had come off his goal-line.
Arbroath changed their keeper at half-time when Neil English came on for Coyle, and English was involved in the incident that led to Alloa's opener after 52 minutes. English came off his line and Ian Ross volleyed the ball over him frm 20 yards into an open goal.
This goal gave Alloa hope and they again put the Smokies' defence under pressure, and the home side richly desreved their equaliser in the 64th minute. Kevin McMullan had been shown a yellow card by referee Duff for a foul on Ross Hamilton 22 yards from goal, and James Stevenson coolly placed the ball to the right of the Arbroath defensive wall, beating English low to his left-hand post.
Both sides tried hard to gain the upper hand in this hard-fought match, but neither side could take control and the game ended in a draw.
After the game the Alloa boss Tom Hendrie was very upset with his side saying: "We had 90 minutes of pressure, we were the best side by far but ended up with a share of the points."