Blair Alston slotted in following Lee Miller's through ball to give the Bairns the lead but James Craigen quickly fired Rovers level.
Falkirk were ahead again through David McCracken's first-half header.
But the visitors equalised again when Mark Stewart struck against his former club, and though Raith had Kyle Benedictus dismissed they held firm.
Raith Rovers twice pegged back their hosts to secure a Scottish Championship draw at the Falkirk Stadium.