Valencia, who had won their previous six league games, were looking to extend their unbeaten run to eight matches. They started the game strongly, with Hugo Duro's early header being saved by Espanyol's goalkeeper, and Enzo Barrenechea firing a shot over the bar.
However, Espanyol grew into the game and came close to scoring when Edu Exposito's long-range shot hit the post.
Valencia then regained control of the game, with Luis Rioja and Barrenechea both coming close to scoring before the break.
But it was Espanyol who took the lead just before halftime, with Javi Puado scoring from Edu Exposito's powerful free-kick.
The second half saw both teams pushing for a goal, with Valencia equalizing just before the hour mark through Javi Guerra's clinical finish.
Both teams created chances in the final minutes, but neither could find the winner, resulting in a draw.
Despite the draw, both teams will be happy with the point, as they move closer to securing their league positions.
Flashscore Man of the Match: Edu Exposito (Espanyol)
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