England lost striker Michael Owen to a knee injury in the first minute but took the lead with a stunning 34th minute lob by Joe Cole from over 30 metres. By the final whistle the scores were level and Sweden's unbeaten run against England stretching back to 1968 is still in tact.
England put in their best performance so far in Germany in the first half and led at half time.
Sweden leveled with a Marcus Allback header in the 51st minute. Sweden then dominated the play so Eriksson brought on Steven Gerrard who put England back in front with a header from a Cole cross four minutes from time.
Then just as England thought they were going to pick up a famous victory Henrik Larsson brought the scores level again after a long throw seemed to baffle everyone in white.
From an England point of view the result was marred by a knee injury to striker Michael Owen who twisted his knee and was stretchered off in the first minute. England seemed to be a little rattled by the sight of Owen leaving on a stretcher and struggled to keep possession for the opening 20 minutes.
However it was Joe Cole who went on to win man of the match who was troubling the Swedish defence. He was inspired and then in the 36th minute Cole controlled a headed clearance by Niclas Alexandersson with his chest and struck a long-range shot that keeper Andreas Isaksson could only touch on to the inside of his post as it flew in.
After Gerrard's score England fans thought the match had been won and the team probably lost concentration thinking they were safe with only seconds to go.
England will play Ecuador in the last 16 of the World Cup after securing a draw with Sweden and claiming the top position in Group B.
They will need to spend the next week concentrating on their defence because there is a real weakness at corner time.
Sweden: Isaksson, Lucic, Mellberg, Edman, Alexandersson, Linderoth (Andersson 90), Kallstrom, Ljungberg, Jonson (Wilhelmsson 54), Larsson, Allback (Elmander 74).
Subs Not Used: Alvbage, Hansson, Ibrahimovic, Nilsson, Rosenberg, Shaaban, Stenman, Anders Svensson, Karl Svensson.
Booked: Alexandersson, Ljungberg.
Goals: Allback 51, Larsson 90.
England: Robinson, Carragher, Ferdinand (Campbell 56), Terry, Ashley Cole, Beckham, Lampard, Hargreaves, Joe Cole, Rooney (Gerrard 69), Owen (Crouch 4).
Subs Not Used: Bridge, Carrick, Carson, Downing, James, Jenas, Lennon, Neville, Walcott.
Booked: Hargreaves.
Goals: Joe Cole 34, Gerrard 85.
Att: 45,000.
Ref: Massimo Busacca (Switzerland).
Fifa man of the match: Joe Cole