While Posh netted through Adam Newton, Dean Holden, Paul Carden and Mark Arber, top form goalkeeper Tyler, who had produced a string of fine saves in normal play, was beaten by Martin Brittain and Billy Clarke before Alex Bruce piled on the Ipswich misery by missing the target completely.
There was little evidence of a two division gulf in class as Posh carried the game to Ipswich with Trevor Benjamin setting up Newton to whip a low shot across goal after just four minutes. Then Guy Branston moved forward to head narrowly wide from a Jamie Day cross.
Youngster Danny Haynes brought Ipswich into the game, slotting the ball through Day's legs before hitting a curling cross that Tyler raced from his line to gather. Bruce and Dean Bowditch both had shots well saved before the home 'keeper denied Haynes again, diving to his right.
Posh grabbed the lead in first half added time when Benjamin was brought down in the area by Richard Naylor, who was shown a yellow card for his trouble. Benjamin took a long run before sending Lewis Price the wrong way from the penalty spot as he buried a fierce right-footed shot in the opposite corner of the net.
Just after the break Posh appealed for a second penalty after Simon Yeo was flattened, but this time referee Keith Hill was having none of it. However the League Two outfit continued to cause problems with Richard Butcher picking up every loose ball and Benjamin always ready to take players on.
Clarke almost pounced on a Chris Plummer back header before Tyler dashed to the rescue. Moments later the goalkeeper was again on hand when Day inadvertently stabbed a Brittain corner back across the face of his own goal.
Ipswich finally hauled themselves on level terms with just one minute of normal time left. Skipper Richard de Vos netted with a brave diving header after a Bowditch break ended with a low cross from Matt Richards.
And as the game went into seven minutes of added time Branston hacked a full blooded Richards drive off the Posh line with Tyler beaten.
Branston put Posh back in front with a storming header from skipper Dean Holden's corner five minutes into extra time, but Ipswich equalised yet again with substitute Clarke poaching his first senior goal from close range as the ball dropped kindly at his feet after Tyler pushed a shot against the angle of post and bar.