Nathan Broadhead’s first goal for Town, a brilliant free-kick, has given the Blues a lifeline at Portman Road, Michael Smith and George Byers having previously given Sheffield Wednesday a two-goal lead.
Town boss Kieran McKenna made four changes from the team which drew 1-1 at Cambridge United last week.
Luke Woolfenden and Cameron Burgess returned at the back for Richard Keogh and George Edmundson, who dropped out of the squad, while Cameron Humphreys started in midfield for the injured Lee Evans.
George Hirst was the central striker against the club where he started his career and where his father David was a legend in the eighties and nineties with Freddie Ladapo on the bench.
Wes Burns was fit enough to start wide on the right having been a doubt ahead of the game.
Town’s other former Wednesday man, midfielder Massimo Luongo, missed out on a place in the 18 having been another concern going into the match.
The Owls made one change from the team which beat Plymouth 1-0 last week with goalscorer Callum Paterson injured and Akin Famewo coming into the side. Former Town loanees David Stockdale and Tyreeq Bakinson were on the Owls’ bench.
The Blues struck the game’s first shot in the eighth minute, Broadhead cutting back from the left towards Conor Chaplin but a defender just did enough as the Blues’ 15-goal top scorer shot to take the sting out of his effort which bounced harmlessly through to Owls keeper Cameron Dawson.
The visitors created their first chance two minutes later, Smith smashing well over the bar after chesting down Byers’s pass.
Town continued to see most of the ball and as the game past the quarter-hour mark the Blues won two corners in quick succession.
And from the second, the Blues were awarded a penalty. As the ball came over, Burns was sent to the floor, apparently by Aden Flint, and the linesman waved his flag frantically to indicate a foul. Referee Geoff Eltringham discussed the matter with his assistant at length before pointing to the spot.
Chaplin was charged with taking the kick - Hirst having tried to grab the ball before the referee had even confirmed the award - hit it down the middle and the keeper saved with his trailing feet as dived to his left.
Town were to rue the miss eight minutes later when Wednesday took the lead. Following a quickly-taken free-kick on the left, Josh Windass was played into space down the flank with the Blues sleeping. The former Rangers man crossed and Smith glanced a deftly-guided header over and across Christian Walton into the top corner of the net.
Seven minutes after the first goal, the Owls made it 2-0. After Will Vaulks had been booked for time-wasting ahead of a free-kick on halfway, skipper Barry Bannan looped the ball into the box and as Davis and Windass challenged in the air, it fell loose to Byers on the edge of the area from where he hit a low shot past Walton and into the corner of the net.
Wednesday were almost handed a third in the 36th minute, Woolfenden gifting possession to Smith midway inside the Town half with Walton advanced from his goal. Fortunately for the Blues, the former Rotherham striker took the ball too wide and eventually Vaulks struck a low shot from the edge of the box which was straight at Walton.
The Blues’ support’s frustration with that incident, how the game had progressed and their team’s increasingly scrappy display was made clear, as it was when a number of subsequent passes went astray.
However, in the 42nd minute, the Blues pulled a goal back. Humphreys was tripped as he burst towards the area and Broadhead sent a powerful shot over the wall and into the top corner of the net to Dawson’s right.
The recent signing from Everton’s first goal for the club completely changed the mood around Portman Road and the previously deflated home fans roared their side on as the half entered its final minutes, Hirst breaking into the area on the right before hitting a shot against a defender.
Moments later, Burns was correctly penalised for a foul on Flint as a cross came over from the left and reached Hirst at the far post, the striker scuffing wide in any case.
Town ended the half in the ascendency with their fans continuing to give them their backing.
Up until Broadhead’s goal - and it’s difficult to recall a better Town free-kick since the days of Martijn Reuser - it had been something of a nightmare half for the Blues.
Town had started to look threatening when they were awarded the penalty but as so often this season the Blues failed to make the most of an opportunity with Chaplin’s spot-kick a poor one.
Wednesday, who had shown no threat up until that point, then went in front via Smith’s excellent header, although Blues boss McKenna will have been less than impressed with the lax defending following the quick free-kick.
Town defended similarly poorly to allow the Owls to go two in front and at that stage the game looked all over with Wednesday having a chance to make it three.
However, Broadhead’s goal changed the atmosphere around the game with the impetus with the Blues as the half-time whistle blew.
Town: Walton, Clarke, Woolfenden, Burgess, Burns, Humphreys, Morsy (c), Davis, Chaplin, Broadhead, Hirst. Subs: Hladky, Donacien, Leigh, Aluko, Harness, Jackson, Ladapo.
Sheffield Wednesday: Dawson, Palmer, Vaulks, Iorfa, Bannan (c), Windass, Byers, Famewo, Johnson, Smith, Flint. Subs: Stockdale, Brown, Adeniran, Dele-Bashiru, Bakinson, Shipston, Fusire. Referee: Geoff Eltringham (County Durham).